How much money should you invest in search engine optimization? Is SEO really worth it for your business? Do you worry thinking that your SEO efforts won’t bring the needed results and, hence, you will end up losing your money? If such questions scare you, we have got your back.
There are considerable chances that your business might still not have started building its online presence. This makes investing in SEO all the more important and brightens your chances of getting ahead of your competitors.
But how do you determine the true worth of SEO? How do you convince your clients that SEO is something they can’t miss out on?
Well, we have gathered here to make this measurement easy for you. Let’s find out how to measure ROI in SEO and simplify things.
Defining ROI for SEO
SEO Return on Investment is the process of measuring the amount of revenue your SEO investment generates. How to measure ROI in SEO requires you to keep track of the organic traffic of the website, conversion rates, and the amount of revenue organic search generates along with the Key Performance Indicators.
Measuring ROI helps the business to make wise decisions as far as their marketing budget is concerned and take necessary steps for more returns in the future.
Measuring ROI
Let’s walk you down through the process of calculating ROI –
ROI Calculator
The first and foremost step when it comes to calculating SEO ROI is to look for an ROI calculator. The calculator has properties in which you can fill in all the information and find out if your SEO strategy is going to give you considerable returns or not. The other way is to calculate the ROI using the following formula –
ROI = [(Gain from investment – Cost of investment)/Cost of investment] x 100
Check your expenses for investing in SEO, which will give you the cost of investment figures. To find out the “Gain from investment,” refer to the data provided by Google Analytics. Now plug in the numbers in the formula and get the percentage representing SEO Return on Investment.
Keyword selection
Determining ROI from the ROI calculator requires you to know your target keywords and the monthly search volume of each target keyword. It is advisable to select long-tail keywords matching the search intent of your prospects for getting the most accurate figures.
If you are stuck in getting the right keywords, you can get assistance from professional SEO services. Adding this information to the ROI calculator will help you get the ROI figures easily.
Estimating conversions
Estimating conversions is yet another measure to calculate the SEO Return on investment. To successfully do this, you need to consider the conversion rate from paid search. Suppose it is 20%. Now, determine the conversion value from the paid search. Let’s say, in this case, it is 4000 US Dollars per conversion. Use these figures to estimate the conversion for determining the results of your organic search efforts.
For instance – Suppose you have received 2000 organic search visits. Now imagine that 20% of those visits resulted in conversions on the basis of a paid search conversion rate, which gives an estimate of around 400 conversions.
For ROI calculation, multiply the value of conversions (4000 US Dollars) by an estimated number of conversions (400). Calculating it would result in 400,000 US Dollars, which is your estimated conversions from organic search.
Note: These estimates might differ from the real conversion data. But they still offer you insights and ideas related to the potential value of your organic search effort results. You can move to a more accurate assessment of ROI Calculations as you refine your SEO strategy and get the actual conversion data.
Track the performance of the campaign.
Maintain a record of tracking the performance of the campaign with the help of measuring SEO KPIs. How to do so? You can get help from Google Analytics and SEO tools like Ahrefs or SEM Rush to keep track of organic traffic and organic conversions.
Why is measuring ROI Important in SEO?
ROI is an important metric to measure because –
- It helps in SEO lead generation by attracting targeted traffic and enhancing online visibility.
- By measuring ROI, you can justify the value of your services to the clients and give the required justification of why you are charging them the said amount for your services.
- Optimize your SEO strategies accordingly for each client by taking a look into their SEO campaigns and hence making adjustments.
- The allocation of budget and resources to each client becomes more efficient as you now have a clear idea of how much amount and energy should be given to each client and project depending upon the potential returns.
Final Thoughts
There is no denying the fact that SEO is one of the most lucrative investments you can make for your business. To make this investment worthwhile, measuring ROI is like icing on the cake, which will help you strengthen your arguments. And if you are struggling with any aspect of SEO, fret not. Our SEO Company – SEO Propellant, will take all your worries away. Want to know how? Contact us for more information.