Calculating SEO ROI: what it is, how to measure and calculate this important marketing metric
SEO ROI is a measure of SEO success. It measures the return on investment from SEO efforts. Calculating SEO ROI is an important step in SEO campaigns because it tells you what you are getting back from your investments in time, money and resources.
It is an important metric for marketers to consider, because if they cannot measure the return on their SEO efforts, then what’s the point of spending money and time improving SEO. In this blog post, we will give an overview of what SEO ROI is all about, how to calculate it and also provide a formula that can be used to calculate SEO ROI.
Table of Contents:
What SEO ROI is all about?
SEO can be very powerful and effective if you have a good SEO strategy set up to take advantage of it. However, SEO alone cannot bring huge traffic to your website, so SEO is just one part of your marketing strategy. You need to be clear about what you are trying to achieve with SEO, and how this will result in better business outcomes for your company.
SEO ROI is a measure of SEO success that tells marketers if their efforts in improving SEO rankings are bringing them the expected results or not. It measures the return on investment from SEO efforts during certain time periods (usually annually). SEO ROI is an important step in SEO campaigns because it tells you what you are getting back from your investments.
Although SEO should be a continuous process, SEO ROI can only be calculated after assessing the impact of SEO on business metrics such as sales and leads generated over a certain time period.
In other words, SEO efforts will have to take place before calculating SEO ROI. You cannot calculate this metric for one month or quarter – it has been around long enough that we know there’s at least 12 months between each calculation which means even if Google changed their algorithms every week our method would still work well! The formula used to calculate SEO ROIs isn’t too complicated either – don’t let us scare you with big words and crazy formulas!
How to measure SEO ROI?
SEO ROI is measured in different ways. A popular way of measuring SEO success is by calculating the increase or decrease in SEO traffic after SEO efforts have been made, which can then be used to calculate SEO ROI.
For example, if you invested 10,000 into SEO this month and it has resulted in an additional 100 visits per week (that’s a 20% increase), your SEO ROI would simply be 80%. If on the other hand there was no change in traffic compared with last month (or even worse – your website lost visitors) then your SEO ROI would be 0%.
Another method would be through website traffic, the number of leads generated through organic search channels etc., along with financial data like revenue & expenses related to these initiatives over a given timeframe, usually annually. The formula used for calculating SEO ROI is
SEO ROI = ((Increase in SEO traffic) / (SEO investment)) * 100.
You can also use other input metrics to calculate SEO ROI, such as bounce rate or time spent on websites that are affected by SEO rankings. This is because increasing organic traffic should have a positive impact on these metrics too, which you could then take into consideration when calculating SEO ROI.
What are some tips for SEO ROI?
There are several tips for SEO ROI that can help you improve your SEO results and get a better return on investment.
The first tip is to know where your website stands compared with the rest of the competition in Google, so here’s a quick SEO tool called MozRank Checker which helps you check if your site has what it takes to rank high or not, thus allowing you to set up more effective SEO strategies.
Another good idea would be setting SMART goals (specific, measurable, achievable, relevant & time-bound) before getting started. For example: “By November 2021, I want my site ranking between position #10-15 for keywords related to our industry” – this will give marketers clear expectations of what SEO ROI should look like.
Lastly, SEO is not an overnight solution – it takes time to get to the top of Google’s search results so you need to be patient and keep investing in SEO efforts for a while before expecting any positive results!
And that’s pretty much all there is to say about SEO ROI – hope this blog post was helpful in understanding how important SEO metrics are when trying to improve your SEO rankings and increase traffic on your website.