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Welcome to Performance Marketing, the monthly newsletter for online marketers.

Every month, Performance Marketing gives you insight into how to take advantage of the latest developments and how changes in the marketplace may affect your online marketing initiatives. Produced by the experts at LSF Interactive, each issue delivers the knowledge and experience of the premier performance marketing agency.

Calculating Blog ROI


Dear Reader,

Welcome to Performance Marketing, the monthly newsletter for online marketers looking for results.

The rise of Facebook, Twitter and other social media has left some marketers wondering if and how to integrate these newer opportunities into their strategic mix. Faced with finite budgets and resources, many wonder whether or not to implement social media at the expense of more time-tested tactics.

Happily it's not an either/or situation -- social media can actually reinforce the effectiveness of many of these tactics. Blogging, for example, can complement, rather than compete, with an organization's initiatives on Twitter, Facebook, and other social networks. This issue of Performance Marketing examines the mutual benefits of blogging and social media, and provides nine metrics to ensure your blog is performing the way you want it to.

All the Best,
Daniel Laury
Founder, President and CEO
LSF Interactive

Feature Article: Calculating Blog ROI

One in three companies in the United States has a corporate blog, according to an eMarketer report. Estimates are that this number will increase to 43 percent by 2012.

The benefits of blogging are well established. Blogs offer improved search rankings, increased web traffic, and quick adoption into the search engines. Blogs put a human face on your company, build trust and rapport, and offer a cost-effective way to build a brand. They also allow you to communicate directly and openly with customers, critics and other stakeholders as well as broaden your reach to those who may not know you.

Along with the rise of microblogging via Twitter and other social media platforms, traditional blogging still has an important place in your marketing arsenal and can be used to reinforce your other social media efforts.

Tweets, status updates and blog posts allow you to achieve the same goals -- engaging with your stakeholders, improving brand awareness, and presenting your company as responsive and knowledgeable.

Google, like many other businesses, is using Twitter and other social networks to support their marketing initiatives, although few are doing it on the same scale.

The company has 100 Twitter accounts that range from @google, which features company news and has 2.4 million followers, to @googleapis, which features information about Google APIs and has 6,400 followers.

Google's strategy is to use Twitter to drive traffic to their blogs and other sites. Almost every tweet contains a link referencing other information that's more detailed than 140 characters.

"LSF Interactive's blog, New Media Chatter, allows us to share information and connect with our clients, as well as those in our industry. Blogging shows that we employ the very methods we recommend to our clients. Ultimately, the only way to know what works is to try it yourself. It's all about leading by example," said Jamie Murnane, Search and Social Media Specialist, LSF Interactive.

So how do you know if your blog is performing the way you want it to, or if your social media efforts are reinforcing your blog or vice versa? Here are nine metrics for calculating the ROI of your blog.

1. Social Media Buzz
Measure the social buzz generated by your blog posts by tracking retweets, social bookmarks, likes and social mentions.

2. Followers and Friends
Measure the number of followers and quality of those followers from your blogging compared to other social efforts on Facebook, YouTube and Linkedin.

3. Subscriptions
Compare the number of site visitors from your blog who signed up for an RSS feed or your newsletter to sign-ups you receive from organic and paid traffic.

4. Site Traffic
Track the traffic from your blog along with the percentage of total traffic. Compare the cost to attain this traffic with your PPC and SEO campaigns.

5. Traffic Engagement
Measure traffic engagement indicators including bounce rate, time on site, pages per visit and repeat visits across all online marketing efforts.

6. Links
Chart inbound links to your blogs, along with anchor text and compare links to your blog with other site links attained through SEO.

7. Keyword Rank & Click Share
Compare the rank and click through rate of your blog posts, site pages and pay-per-click ads for target keywords, along with the percent of clicks each source generates.

8. Conversions
Track conversions of readers who visited your blog or your site via a blog post, including percentage of total conversions, conversion rate and cost per conversion.

9. Comments
There's nothing more gratifying than hearing from your readers. Categorize comments into positive, negative and neutral and track changes over time.

These metrics will help you articulate the value of your blog and assess your blogging efforts so you can continue to refine and improve its value.

Remember, when choosing metrics, whether you track followers, conversions, comments or links, more is not necessarily better. Don't just count total numbers -- find out what those visitors or followers are doing once they get to your site and how it is converting in customer engagement, leads or sales.

Ultimately, both blogging and social networks can bring measurable gains in brand awareness, customer engagement, lead generation, e-commerce and retail sales, or reputation management.