It\u2019s not an easy math equation, especially since it\u2019s hard to pin down exactly how much revenue is coming through your SEO efforts. <\/p>\n\n\n\n
If you look at other marketing methods<\/a>, like PPC, working out the return on investment (ROI) is a simple calculation. The numbers are steadfast, it\u2019s just a case of finding them and running them through the formula: <\/p>\n\n\n\n (total ad spend + agency fees) \/ total $ the ads generated = ROI <\/em><\/strong><\/p>\n\n\n\n Working out the ROI of SEO isn\u2019t so straightforward. <\/p>\n\n\n\n In fact, many marketers consider SEO a way to get \u201cfree traffic\u201d. But, as an SEO professional, you know that\u2019s not true. There are tools you need to pay for, contractors to hire, the technical side of things, and any consultants you bring on board, not to mention the amount of time spent on the process. <\/p>\n\n\n\n Here\u2019s our comprehensive guide to SEO ROI<\/a>, including what it is, how you can calculate it, and how long it takes to start seeing returns. <\/p>\n\n\n\n Put simply, SEO ROI is the return you get on your SEO strategy<\/a>. It\u2019s the amount of direct, organic-generated revenue left over after you subtract the costs of implementing it.\u00a0<\/p>\n\n\n\n Calculating SEO ROI requires you to know two things:<\/p>\n\n\n\n It\u2019s easy to think that SEO doesn\u2019t require much investment – after all, it\u2019s just a case of writing a few bits of content and publishing them, right? It\u2019s nowhere near as expensive as PPC campaigns and other traditional advertising methods, right? <\/em><\/p>\n\n\n\n Yes and no.<\/p>\n\n\n\n While it can be far more cost effective than other marketing activities, there are still costs involved: <\/p>\n\n\n\n It\u2019s worth noting that, while there are formulas you can use to figure out your SEO ROI, it doesn\u2019t always tell the whole story. <\/strong><\/p>\n\n\n\n Content is often one of the first touchpoints prospects will have with your brand. They might read a blog post or visit a few product landing pages, leave, and come back days or weeks later to finally make a purchase. <\/p>\n\n\n\n Ah, the tricky part. <\/p>\n\n\n\n Measuring ROI on SEO for a specific keyword isn\u2019t like measuring the ROI<\/a> on other forms of marketing. There is <\/em>a standard formula you can use, but it takes a bit of jumping around to find the right numbers.<\/p>\n\n\n\n To work out the ROI for a keyword, you need to know: <\/p>\n\n\n\n Here\u2019s the formula: <\/p>\n\n\n\n Monthly searches * CTR * value per visit = estimated monthly value <\/em><\/strong><\/p>\n\n\n\n Here, the estimated monthly value essentially refers to your revenue. It\u2019s then a case of subtracting your expenses from that to figure out your ROI:<\/p>\n\n\n\n Monthly value (or revenue) \/ SEO costs x 100 = ROI % <\/em><\/strong><\/p>\n\n\n\n To put the formula to use, you need to get the metrics for your monthly searches, CTR, and the value per visit.<\/p>\n\n\n\n To estimate the organic search volume<\/a> of the keyword you want to do the ROI calculation for, you can do a couple of things. <\/p>\n\n\n\n First, load up Google AdWords Keyword Planner which will provide a wide range of estimated organic traffic<\/a>. <\/p>\n\n\n\n If you\u2019re using a relatively popular search term, this number might vary by a lot, <\/em>making it difficult to run an accurate calculation. However, you might want to take a note of the \u201ctop of the page bid\u201d for your chosen keyword as this can help you later on in the formula. <\/p>\n\n\n\n In the example above, the keyword \u201cchoosing a domain name\u201d gets between 100 and 1,000 searches per month (1,300 in the last month), and has a top-of-the-page bid of \u00a32.07. <\/p>\n\n\n\n If the organic search volume range is too wide, you can use a tool like Ahrefs Keywords Explorer, which provides a far tighter range for search volumes.<\/p>\n\n\n\n Next, you need to figure out your search engine position for that keyword to estimate your click-through rate. It\u2019s a no-brainer that the top results get more click-throughs, so it\u2019s a good idea to shoot for those if you want to see the biggest ROI. <\/p>\n\n\n\n Use Google Search Console to track your position for a specific keyword and to determine how many click-throughs your content gets for that keyword. <\/p>\n\n\n\n The final part of the equation requires you to know how much each visit to your site is worth in monetary terms. <\/p>\n\n\n\n There are two main ways to do this: <\/p>\n\n\n\n The first option is much simpler, but it\u2019ll just give you a generic guesstimate rather than the true figures for your brand. <\/p>\n\n\n\n To carry out the second method, you need Google Analytics set up with goals and conversion tracking in place. From there, you can get the average conversion rate for a specific page (a.k.a. the page your keyword is pointing to) and the average amount people spend when they buy from you. <\/p>\n\n\n\n The formula will look something like this: <\/p>\n\n\n\n Conversion rate * average order value = value per visit<\/em><\/strong><\/p>\n\n\n\n Let\u2019s use an example to calculate the hypothetical ROI of a keyword. <\/p>\n\n\n\n For the sake of this post, let\u2019s imagine you want to rank first on Google for a keyword that gets 5,000 searches a month. <\/p>\n\n\n\n Let\u2019s say the CTR for this query is 30% (about average for the top spot), which will drive 1,500 visitors to your website. If your website has a 2% conversion rate, the keyword should get you 30 new customers each month. <\/p>\n\n\n\n And, finally, if the value of each visit is $50, it will give you an estimated revenue of $1,500 per month. If you spend $800 on tools, contractors, and consultants, that\u2019s an ROI of $700. <\/p>\n\n\n\n It doesn\u2019t seem like a lot, but that\u2019s just for one <\/em>month – the first <\/em>month. <\/strong><\/p>\n\n\n\n The biggest benefit of SEO is that it\u2019s a slow burner and brings in revenue long after you\u2019ve optimized the page and written the content. Over the space of a year that $700 quickly turns into $8,400 (even more if you lower your SEO expenses each month). <\/p>\n\n\n\n The above formula shows you how to calculate the ROI of each keyword, but what about the ROI of your SEO efforts as a whole? <\/p>\n\n\n\n Investopedia <\/a>recommends the following formula to do this: <\/p>\n\n\n\n (Gain from Investment – Cost of Investment) \/ Cost of Investment<\/em><\/strong><\/p>\n\n\n\n Then, multiply the result by 100 to get your ROI percentage. Start by adding up the ROI of each keyword you\u2019re targeting in your SEO strategy until you get an overall revenue number. Let\u2019s say that number is $75,000 and you\u2019ve invested $10,000 in your strategy. The formula would look like this: <\/p>\n\n\n\n (75,000 – 10,000) \/ 10,000 or 65,000 \/ 10,000 = 6.5 <\/p>\n\n\n\n Multiply this number by 100 to get an overall ROI of 650%.<\/p>\n\n\n\n This is the million dollar question: how do you know if the ROI you\u2019re generating is good enough? <\/strong><\/em><\/p>\n\n\n\n The truth is, the number will vary depending on your industry and the price point of your products or services. <\/p>\n\n\n\n On top of this, the cost of investing in SEO will fluctuate each month as you ramp up content efforts, hire more contractors, or streamline your SEO toolbox. <\/p>\n\n\n\n On top of this, the cost really hangs on a number of factors, including: <\/p>\n\n\n\n Here\u2019s the deal: you can get hard and fast figures for Google ads and you can start to see returns pretty quickly. Overall, leads from SERPs have a much higher close rate<\/a>, but this can refer to both paid-for visitors and organic website traffic. <\/p>\n\n\n\n The best option is to use both paid ads and organic SEO in tandem. Paid ads bring in revenue while you work on ramping up your SEO efforts, but it\u2019s your SEO efforts that will pay off in the long term. <\/strong><\/p>\n\n\n\n Getting your content ranking in the top spots on Google can explode your growth and provide a much more cost-effective customer acquisition model. <\/p>\n\n\n\n Another million dollar question. <\/p>\n\n\n\n SEO investment is a long-term endeavor, but it can lead to staggering levels of growth if it\u2019s done right. As a general rule, it takes about 3-6 months<\/a> to start seeing traction on your efforts, but it can really ramp up from there. <\/p>\n\n\n\n The amount of time it takes to start seeing results from SEO also depends on: <\/strong><\/p>\n\n\n\n Like anything, SEO is a game of trial and error. It requires constant tweaking, tracking, and optimizing to see the best results. <\/strong><\/p>\n\n\n\n If you\u2019re committed to improving the value of your SEO and consistently increasing your ROI, here\u2019s what you can do: <\/p>\n\n\n\n If you\u2019re ready to ramp up your SEO efforts, we\u2019re here to help. Start by watching this video<\/a> on Content Growth Model that will supercharge your lead generation process, or book a free strategy call<\/a> with our experienced team.<\/p>\n\n\n\n Weekly learnings from working on B2B content & SEO for dozens of companies.<\/p>\nWhat is SEO ROI? <\/strong><\/h2>\n\n\n\n
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How to Measure the ROI of SEO For a Specific Keyword<\/strong><\/h2>\n\n\n\n
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1. Determine Your Organic Search Volume<\/strong><\/h3>\n\n\n\n
![\"adwords](\"https:\/\/mk0omniscientdiqrnx8.kinstacdn.com\/wp-content\/uploads\/2021\/06\/adwords-keyword-planner-1024x202.jpg\")
<\/figure>\n\n\n\n![\"ahrefs](\"https:\/\/beomniscient.com\/wp-content\/uploads\/2021\/06\/ahrefs-keyword-research.jpg\")
<\/figure>\n\n\n\n2. Figure Out Your CTR (or Google Position) <\/strong><\/h3>\n\n\n\n
![\"google](\"https:\/\/beomniscient.com\/wp-content\/uploads\/2021\/06\/google-search-console-CTR.jpg\")
<\/figure>\n\n\n\n3. Work Out the Value of Search Traffic<\/strong><\/h3>\n\n\n\n
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Putting It Into Action: Calculating Your SEO ROI for a Keyword <\/strong><\/h2>\n\n\n\n
How to Measure the Overall ROI of SEO <\/strong><\/h2>\n\n\n\n
What is the Average ROI for an SEO Campaign? <\/strong><\/h2>\n\n\n\n
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How Does the ROI of SEO Compare to Paid Search ROI?<\/strong><\/h3>\n\n\n\n
And How Long Does it Take to See ROI From SEO? <\/strong><\/h3>\n\n\n\n
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Improving the Value of SEO for Consistent Growth <\/strong><\/h2>\n\n\n\n
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Get the Field Notes<\/h2>\n