Acquiring customers is becoming more difficult and expensive. We're being exposed to more content than ever before, and the impact is content marketing is becoming one of the most saturated marketing channels in our arsenal.
Should you stop blogging though? That's the question we set out to answer in epsiode two of the ProfitWell Report, sparked by a question from Brian Balfour, CEO of Reforge.
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Content marketing has never been more in vogue. Off the back of Wordpress, HubSpot, Marketo, WooRank, and countless other companies, the U.S. is about to see nearly 30MM blogs, and the entire world is seeing roughly 5 times that.
To answer Brian's question we looked at over ten thousand different blogs, two orders of magnitude more blog posts, as well as nearly one thousand different subscription companies. Here's what we found.
Overall CAC is up nearly 50% over the past five years
Customer Acquisition Cost (CAC) is up across the board for both B2B and B2C companies has increased by nearly 50% over the past five years. Yet, CAC based on channel tells a different story. While paid CAC is still higher than that of content marketing, CAC for content is actually closing the gap very quickly.
Essentially, we're finally seeing content marketing come into it's own and mature like the paid world did a few years back.
Content quality and output increasing dramatically
Plus, the life of an offer - like an ebook - is actually dropping in effectiveness, as measured through lead velocity. An offer's effectiveness used to be roughly 6 months, whereas today that effectiveness has dropped to less than three.
Is content marketing dead?
So, is content marketing dead? Are we going to delete our HubSpot account as soon as we get done with this post? Of course not. Now is the time you need companies like HubSpot more than ever. Think of it this way - if the cost for me to give you a dollar goes from ten cents to twenty five cents, you'd be insane not to still pay me for the dollar. Content is getting mature, but the ROI is still amazing.
Plus, CAC Ratio's for content still tends to be roughly 30% better than the paid side, because of the compounding nature of content.
Well, that's all for now. If you want us to dig further into this data or any other data, ship me an email or video to email@example.com. Let's also thank Brian for sparking this research by clicking to tweet in the link right below the video to give him a shoutout. See you next week.
By Patrick Campbell
Founder & CEO of ProfitWell, the software for helping subscription companies with their monetization and retention strategies, as well as providing free turnkey subscription financial metrics for over 20,000 companies. Prior to ProfitWell Patrick led Strategic Initiatives for Boston-based Gemvara and was an Economist at Google and the US Intelligence community.