How to calculate the ROI of SEO campaigns
As a digital marketer, one of the popular terms you will hear is ROI(Return on investment). It has the power to make or break your career in a field. ROI in SEO that you can get from your campaigns can be highly profitable.
Why does ROI matter in SEO?
Basically, if you want to have something to show for your efforts as an SEO analyst, ROI is your go-to metric. Those who are higher than you want to see the results. But they do not want to see random statistics that do not make sense. The executives will want to know your SEO return on investment. You will want proof that your SEO campaigns are driving conversions and profits for your clients.
The importance of measuring SEO ROI
53% of the business traffic of an average business is derived from organic search. And for this reason, it’s important that you’re able to understand the actual financial value that the channel is driving to your business.
While your standard SEO KPIs are essential to measuring, the ultimate measure of success is delivering a strong ROI.
If you don’t know how much money is returned for every dollar you invest in your strategy, it’s very difficult to decide which channels in your marketing strategy are performing best. When you’re able to demonstrate a positive ROI, you’re getting success and generating buy-in to the channel from stakeholders right across the business.
How to calculate your ROI from SEO
- Calculating your SEO investment: To start with, you need to calculate the cost of your investment in SEO. For this, you need to combine the costs associated with the channel and use that as your investment figure. These costs include in-house SEO resources, agency resources, and investment in tools.
- Tracking and analysing your conversions: Next, you need to track and measure the value of your conversions. Google Analytics is your best friend here; it helps you quickly and easily capture your business’s revenue from organic searches.
- Calculate your return on investment: Once you have your data, calculating your ROI from SEO is really easy. For example, assume that over the course of a month, your SEO campaign generated $200,000 and that the associated costs were $40,000
Put these figures into the formula above, and we get:
($200,000-$40,000)/$40,000=4
For every $1 you spent on SEO, you saw a return of $4.
Your ROI here is 400%.
You can use this formula to calculate the ROI of your SEO campaign, as long as you know the costs and return.
If you want professional help to improve your ROI from SEO, connect with Build Brand Better. We have helped our clients generate impressive results from digital marketing strategies like SEO. Our services will help you grow every aspect of your business with marketing strategies that are proven to increase revenue and conversions. Contact our experts to know more about it !