The ROI Of Thought Leadership

In this ever-evolving digital landscape… I’m kidding.

There is no chance on Earth I would start a blog post with that sentence (that we now know so well). Every AI-generated piece that has never passed a human editing process sounds like that. So, let’s try again.

In this AI-stomped internet realm, content that shares a distinctive point of view sticks out like a sore thumb. 

The name of the game is thought leadership, and you might have heard your marketing department saying that you need more of it.

Why would you need it?

Because this type of content gets more attention than your ‘regular’ B2B marketing assets (think SEO blog posts, company LinkedIn posts, or Google ads.)

According to Edelman-LinkedIn’s 2024 Thought Leadership Impact Report, 52% of decision-makers and 54% of C-level executives spend an hour or more on average per week reading thought leadership content. The same report states that 73% of decision-makers say an organization’s thought leadership content is more trustworthy for assessing its capabilities and competencies than its marketing materials and product sheets.

Ok, you got it. Thought leadership gets the attention. But how can it move the needle for your business?

Let’s explore the ROI of thought leadership and address the elephant in the room—is it just a ‘nice to have’ addition to your marketing campaigns or something that can truly impact your bottom line? 

We’ll do it this way: I’ll list some key benefits of thought leadership marketing, and you’ll tell me if it’s worth the investment.

Deal? OK, here we go.

Strong Impact on Sales

Starting at the bottom (line) and answering the burning question about the effectiveness of this type of marketing, yes, thought leadership has a direct impact on sales and pricing. As people act after consuming the content, thought leadership can lead to more leads, sales, referrals, and testimonials.

The Harris Poll Thought Leadership report researched Fortune 100 executives who estimate that effective thought leadership can generate approximately $3,6 million annually for companies.

Premium Pricing

Another related impact of thought leadership is on the pricing of your offers. The Edelman-LinkedIn report mentioned above found that 60% of decision-makers are willing to pay a premium to work with organizations and individuals that consistently produce thought leadership content.

We’ve all made similar decisions—it makes more sense to pay more for services that consistently demonstrate they know what they are doing and share actionable insights than those who never say anything or repeat the common knowledge.

Lead Generation and Conversion

A recent survey by IBM found the ROI of thought leadership to be 156%, so over 16 times more effective than a typical marketing campaign. Metrics such as the number of leads from whitepapers or webinars can be tracked, revealing how thought leadership directly influences customer acquisition and conversion rates.

 In addition, if your leadership builds a consistent thought leadership presence on LinkedIn through industry media articles or speaking engagements, a number of leads may come from those online and offline channels.

Enhanced Brand Visibility and Reputation

By sharing unique insights and challenging the status quo, companies can enhance their reputation and visibility, making them more recognizable and credible.

The Harris Poll report states that thought leadership boosts brand authority by 83%. Edelman-LinkedIn report adds that 75% of C-suite executives say that a piece of thought leadership has led them to research a product or service they were not previously considering.

Increased Website Traffic and Engagement

Thought leadership affects even online searches. Google’s ranking systems aim to reward original, high-quality content that demonstrates expertise, experience, authoritativeness, and trustworthiness (referred to as E-E-A-T).

Companies that invest in thought leadership see a boost in website traffic, social media shares, and backlinks. This increase in engagement improves search engine rankings and helps build a loyal audience base.

Competitive Advantage

Logically, when you create original, well-thought-out content, you automatically start to sound unique. Differentiation is one of the top marketing goals and thought leadership helps achieve it.

According to the Harris Poll report, tech organizations that invest in thought leadership content are 89% more likely to stand out among competitors.

Improved Brand Equity and Investor Conversations

Consistent exposure with relevant, quality, and unique content gets your customers’ attention and attracts more eyeballs from investors, analysts, and potential business partners.

Above Financial Benefits

So, there you have it: the main points to the ROI of thought leadership. Now back to my initial question to you: do you feel authority building is worth it?

Let me know what you think in the comments.

But before you stop reading, allow me to share a thought.

I believe thought leadership has two even bigger benefits that go beyond financial gains. Benefits that are related to staying in business for the long run and developing the reputation that you want:

—> Creating human connections

—> Building trust and credibility

This quote illustrates my idea perfectly:

 Consistently and repeatedly delivering credible yet actionable insights to customers during and outside sales cycles offers a unique opportunity to strengthen trust. It involves giving customers a clear sense of the challenges and opportunities that lie ahead, along with a strong sense of how to capitalize on them. Thought leadership is more than ever about informing better decision-making by being a trusted voice.

— Ophelie Janus, Global Head of Thought Leadership, Siemens

Money comes and goes. Every businessperson knows that.

But values like trust and connections stay even during downtimes. In other words, not only does thought leadership have a long shelf-life; it also works for you when things are upswing or down and unstable.

Remember that the next time you decide where to put your marketing dollars.