How To Calculate And Measure The SEO Return On Investment

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How To Calculate And Measure The SEO Return On Investment
How To Calculate And Measure The SEO Return On Investment

No matters how secure your strategy or practices are, there will always be a worry of the results or in digital marketing, we call it ROI (Return On Investment). Unlike PPC when choosing SEO services we worry about return on investment because the SEO ROI is hard to calculate. With PPC, it is easy to calculate ROI but SEO Services never come with fixed costs and fixed results. Hence, the results are unpredictable. But there are KPIs that help SEO analysts or online businesses calculate SEO returns.

In this article, we have discussed the two principal methods of calculating ROI for SEO services. The first method is to set the metrics or KPIs that you want to track. The second method is using a particular formula designed for calculating ROI. As you read further, we will let you know how you can calculate SEO ROI.

Importance of Calculating SEO ROI

Predicting the results can save a lot of your time and resources. If you run an SEO services agency, then it’s mandatory to calculate ROI and tell the clients what you have achieved through SEO. Being an individual also needs to figure out your SEO campaign whether it works for you. If there is a high ROI, then an SEO campaign is working for you.

Step-by-step Guide On Calculating SEO ROI

There are no fixed rules to calculate SEO ROI but you can perform few steps. These steps are flexible and easy to use. You can customize them according to your calculations or SEO goals.

Also, Read: What Are Meta Tags And How It Impact Your SEO?

Here Are The Complete Steps To Calculate SEO ROI.

Step 1: Keep Record of Costs

The first step is to keep a record of all the SEO campaign costs. There are SEO packages available in the market. If you have chosen an SEO package, then you can calculate the cost. Most of the time SEO packages have fixed costs. But sometimes there are self-dependent SEO campaigns that have different costs included.

Infrastructure

First, see what and how expensive infrastructure you are using to do SEO. SEO campaigns can have infrastructure from computers, the internet to other equipment.

SEO Tools

There is a variety of SEO or digital marketing tools available for campaigns. You need to buy these tools and keep track of their costs that you are using.

Human resources

Having an SEO campaign and ensuring its healthy working can require a lot of your time and is not a one-person task. Hence, you may need keyword researchers, campaign managers, content writers, and many people in your team. All these members will get paid from your side. So including human resources is much needed.

Time Invested

The time you invest in your SEO campaign matters the most. Sometimes the SEO campaigns can take longer than a few months. So you need to mention the time you dedicate to the SEO campaign in a day, week, or month.

Step 2: Choose KPI

After planning out an SEO campaign how will you figure out the success of your campaign? For this you can rely on KPIs used to find what goals you can set and how to achieve them in an SEO campaign. Following are the basic goals you can set for your SEO campaign.

Organic Traffic

It is the fundamental Key Performance Indicators (KPIs). Any SEO campaign is never complete without organic traffic. Hence, it is an essential metric that you need to track.

Conversions

After organic traffic, conversions should be your focus. Conversion means more sales and revenues and SEO gives a good rate of conversions. You can set conversions as your KPI if you are going to get it through SEO packages.

Online Reputation

Many online businesses buy SEO packages for the sake of online reputation and achieve good rankings at SERPs. Intending to attract page visitors and stay ahead of the competitors businesses look for SEO packages. The more organic traffic and search engine ranking you get on the search engine result page the more online reputation you gain.

Subscriptions

Starting the subscription service for your newsletters or any other paid publishing services also serve as a good KPI to track your online business. It is an effortless task to count the number of subscribers to your mailing service and track to figure out if your SEO campaign works or not.

Step 3: Fix KPI deadline

This step is to fix a deadline. Many online businesses focus on multiple KPIs at a time for better results. If you also aim to have better results and want SEO results in ROI then you must choose at least one KPI for you.

Check Whether It Is Achieved Or Not

Now when you have the KPI to look after, you need to see if the KPI is achieved before the deadline or not. If achieved within the deadline, then it means under the cost.

Step 4: Use Formula to find ROI

The ultimate step after choosing the KPI and the deadline is to use the formula to find out the return on investment (ROI) on your SEO campaign. Your SEO campaign can have various goals and might require different formulas for each.

Following Are Some Formulas That You Can Use
For Conversions/Sales

If conversions and sales are your targets, then you will have to find the value of conversions. Once calculated, the value of conversions will be subtracted from the cost of SEO investment. The number that you get will be divided with the cost of investment again, now you will find the conversion in percentage.

For Organic Traffic

 

The formula applied to conversion and sales will apply to organic traffic too. Here you have to subtract the organic traffic value from the cost of SEO. Now divide the number with SEO cost again.

 

Calculating the exact result of your SEO campaigns through formulas will save a lot of your time. As mentioned earlier, the cost of an SEO depends on multiple factors, i.e. from human resources to tools and from time to infrastructure. After calculating all the costs, set a KPI for your SEO campaign. After this, you need to use the formula i.e. to subtract the values of goals with the cost of SEO and after getting the answer you need to divide it with SEO cost again.

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