A New Age Shall Bring New KPIs
In the ever-changing landscape of digital marketing, new trends and strategies constantly emerge. In the age of AI, marketers have access to a wide array of powerful tools that can significantly impact their success. I want to explore a digital Key Performance Indicator (KPI) that is still not talked about.
But we should be talking about it.
It's probably the most important KPI for content marketers.
How come?
I think it holds immense potential for digital growth and campaign success.
It is Cost per Content: the essential KPI that few are using but can be a game-changer in most digital marketing efforts.
The Rise of Short-Form Video Content:
Let's start by talking about content.
I was listening to a podcast episode about Meta’s marketing summit. It highlighted how big brands are scaling their marketing efforts. One of the most significant trends marketers are witnessing is the popularity of short-form video content. Platforms like TikTok, Instagram Reels, and YouTube Shorts are witnessing exponential growth, with users consuming countless videos every day. In this fast-paced environment, marketers must adapt and find efficient ways to meet the insatiable appetite for media.
Introducing Cost per Content "The Game-Changer":
In the midst of this media revolution, where you no longer need to tilt your phone sideways, the most important KPI that marketers must track is Cost per Content.
Is this a fact Pablo?
No, it is my opinion. And here is my reasoning...
Quantity has become a crucial factor in this digital landscape. As the competition for audience attention intensifies, marketers need to focus on producing a high volume of content. Quality content remains essential, but it becomes an axiom - a baseline requirement. The real breakthrough lies in leveraging AI tools to repurpose content into numerous short-form videos.
The Power of AI-Driven Content (Repurposing):
One such powerful AI tool is vidyo.ai. This tool automatically transforms long-form videos into short-form clips, complete with captions tailored for different social media platforms. This process allows marketers to repurpose content effectively and efficiently for networks like YouTube shorts, Instagram shorts, TikTok, and more. With hundreds of templates at their disposal, marketers can effortlessly produce engaging content for different platforms.
These are the type of tools we need to learn and master now.
If you are still punching prompts into chatGPT... well good for you. Welcome to the age of AI which started a few months ago.
As marketers, we need to take it to the next level. How do AI tools help us meet the insatiable content demands of our clients and their audiences?
We have to scale up the production of quality content. But who and what determines quality? And when we report back results, we can no longer just point fingers at engagement metrics.
It's just not enough. We are better than that.
That is why, I want to start working with new metrics that will help us make better decisions and measure the effectiveness of our content strategies. Such as Cost per Content.
Calculating Cost per Content
Unlike several other KPIs (thank you Google and Meta) calculating the Cost per Content is a straightforward process.
It involves determining the total cost of producing and distributing content and then dividing that by the number of pieces of content created.
I thought a step-by-step guide to how I calculate Cost per Content might be helpful:
Step 1: Determine Total Production Costs
Gather all the costs associated with producing the content.
This includes expenses such as:
Content creation: Costs related to video production, graphic design, copywriting, or any other creative work involved.
Tools and software: Expenses for using AI tools like vidyo.ai or other content creation software.
Editing and post-production: Costs for video editing, sound mixing, or other post-production activities.
Talent or outsourcing: If you hire professionals or agencies to create the content, include their fees.
Add up all these costs to find the total production cost.
Step 2: Include Distribution Costs (Optional)
If your content distribution involves additional expenses, such as paid social media advertising or content promotion, also include these costs (Not all content distribution strategies have additional costs, so this step is optional depending on your marketing approach).
Step 3: Count the Number of Content Pieces
Determine the total number of content pieces that were created during the specified period. This can include short-form videos, blog posts, infographics, and any other content types.
Step 4: Calculate Cost per Content
Use the following formula to calculate the Cost per Content:
Cost per Content = (Total Production Costs + Distribution Costs) / Number of Content Pieces
For example, let's say you spent $5,000 on producing and distributing content, and during that time, you created 50 pieces of content, therefore:
Cost per Content = ($5,000) / 50 = $100 per content piece
So, in this example, the Cost per Content is $100.
I believe it is essential to keep track of these costs over time to monitor your marketing budget and analyze the return on investment (ROI) for your content marketing efforts. If more of us would regularly review the Cost per Content we could identify areas to improve efficiency and optimize the content creation process.
Overcoming the Fear of AI in Marketing:
Many marketers fear that AI will replace human creativity and skills.
I get it.
But AI should be seen as a productivity multiplier, not a replacement.
AI based tools are designed to empower video editors and content creators, making them more productive and efficient. So, complacency and lack of ambition to learn should be the source of fear. Not AI.
Embracing AI will help with content repurposing. Marketers now have the opportunity to keep up with the high demands of the digital era and stay ahead of the competition.
The Volume Game:
Volume wins in the digital landscape, especially in the top-of-funnel pre-awareness stage.
Creating a vast amount of content allows marketers to test various approaches, identify what resonates with their audience, and refine their strategies accordingly.
The algorithm-driven nature of social media platforms ensures that the most engaging content gets the most visibility. So, producing a high volume of content maximizes the chances of creating viral hits. It's kind of like giving Michael Jordan more playtime. If you see what I mean.
Balancing Quality and Quantity:
While volume is crucial, it should not come at the expense of quality.
Quality content remains the foundation on which marketers build their strategies. However, with the right AI tools, marketers can strike the right balance between quality and quantity.
They can produce high-quality content and then efficiently repurpose it into multiple engaging short-form videos, reaching a wider audience and increasing engagement.
Final takeaway
In the new age of AI, Cost per Content has become the most critical KPI every (content) marketer should track. Embracing AI-powered content repurposing tools can be a game-changer, enabling marketers to scale their efforts and stay competitive in a fast-paced digital world.
By prioritizing volume, embracing AI technology, and striking the right balance between quality and quantity, marketers can unlock digital marketing success.
The question is... are you ready to leverage Cost per Content?
Change is difficult but necessary to stay in the digital marketing game.