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How To Calculate ROI on SEO

SEO is a long-term investment that can be difficult to measure the return on. So naturally, you're wondering if hiring an SEO agency is the right move. You may see increases in website traffic and conversions, but it can be hard to determine how much of this is due to the SEO efforts and how much is due to other marketing initiatives.

Emphasize that traffic isn't the only metric you should be tracking. You should also be looking at other indicators such as the number of leads, sales, or goals completed as a result of the SEO campaign.

To get the most accurate picture of your SEO ROI, you should track your organic traffic and conversion rate over time. This will help you see whether there is a correlation between the two and how much of an impact your SEO campaign has.

It's also important to keep in mind that SEO is a long-term strategy, so you may not see results immediately. So be patient and continue to track your progress over time to get the most accurate picture of your SEO ROI.

What is SEO and why is it important

SEO, or search engine optimization, is the process of improving the visibility and ranking of a website on search engines. SEO is important because it can help a business attract more visitors to its website, leading to increased sales and revenue.

Many factors go into SEO, and it can be a complex process. However, there are some simple things that any business can do to improve their website's SEO.

One of the most important things to keep in mind when optimizing a website for search engines is to focus on the user experience. This means creating relevant and engaging content and making sure that the website is easy to navigate.

How does SEO work

SEO is the process of optimizing a website for Google search to earn higher web traffic levels and improve the site's visibility. The goal is to improve the quantity and quality of traffic to the site from search engines, ideally resulting in increased revenue. However, measuring SEO's return on investment (ROI) can be difficult.

You may see increases in website traffic and conversions, but it can be hard to determine how much of this is due to the SEO efforts and how much is due to other marketing initiatives. Emphasize that traffic isn't the only metric you should be tracking. Other important measures include leads, sales, and engagement.

The benefits of SEO

SEO can improve a website's visibility, which can lead to increased traffic levels and conversions. SEO can also help to improve the quality of the traffic to a site, resulting in more qualified leads and sales. Additionally, since part of SEO is making your website experience better for users (not just Google), a successful SEO campaign can improve user engagement, resulting in lower bounce rates and longer time on site.

We love to relate SEO to everyday experiences, so let's compare it to getting into better shape. Of course, the overall goal for "getting in shape" is to improve your appearance, but usually, the benefits go beyond that singular goal.

When getting in shape, you can expect a higher sense of confidence, your doctor will likely be impressed with the improvement in your overall health during your physical, and you will sleep better.

Improving your website SEO is a lot like that. Yes, you'll get more traffic, but a good SEO campaign will make your website mobile-friendly, load faster, and provide a brand voice that customers can relate to.

What metrics should you track outside of traffic?

One important metric to track when measuring the success of your SEO campaign is website traffic. However, you should not rely solely on this metric to determine the effectiveness of your campaign. You should also track other metrics such as leads, sales, revenue, dwell time, and keyword growth. This will help you determine how much of an impact your SEO efforts have on your business.

Leads

Leads will be measured by service-based companies that rely on a sales process to convert visitors into customers. If you are in this type of business, you should track the number of leads that your SEO campaign generates. You can do this by setting up lead tracking in Google Analytics.

Sales

If you are an ecommerce store, you will want to track sales as your primary metric for success. However, you can also track other metrics such as conversion rate and average order value. These metrics will give you a better idea of how your SEO campaign is affecting your business.

Revenue

Revenue is another important metric to track, especially for ecommerce stores. You should track the revenue that your SEO campaign generates to determine how much it is impacting your bottom line.

Dwell Time

Dwell time is the amount of time a user spends on your website. This metric is important because it shows how engaged users are with your site. If you see an increase in dwell time, then it means that users are finding your content relevant and engaging.

Keyword Growth

One of the most important metrics to track when measuring the success of your SEO campaign is keyword growth. This metric will show you how many new keywords your website is ranking for due to your SEO efforts.

Brand awareness

Brand awareness is another important metric to track. This metric measures how much your brand is being talked about online. You can track brand awareness by looking at the number of mentions your website gets on social media and other websites.

These are just a few of the metrics that you should track when measuring the success of your SEO campaign. By tracking these metrics, you will get a better idea of how your campaign is affecting your business.

Cost per lead

If you are in a service-based business, then your main metric for success will be the cost per lead. This metric measures how much it costs to generate a lead through your SEO campaign.

Here's how you can calculate the cost per lead. First, take your monthly fee for SEO and divide it by the number of leads that resulted from the campaign. That's the simplest way to calculate your cost per lead.

Suppose you were Signature Insurance, one of our Insurance Agency SEO clients. You would take our monthly fee and divide that by the 437 leads they get every month.

The best part about these leads is that they are inbound and ask to be quoted instead of solicited.

Keyword rankings

Another metric that you should track is keyword rankings. This metric measures how well your website is ranking for certain keywords. You can track keyword rankings by using a tool like Google Search Console.

Google Search Console will show you the average position of your website for certain keywords. If you see an increase in the average position, then it means that your SEO campaign is working.

Click-through rate

The click-through rate (CTR) is another important metric to track. This metric measures how often people click on your website in the search results.

You can calculate your CTR by taking the number of clicks your website gets and dividing it by the number of impressions your website gets.

If you want to track your CTR, you need to set up Google Search Console. Once you have Google Search Console set up, you can track your CTR by going to the Performance tab.

There, you will see a graph that shows your CTR over time. If you see an increase in the CTR, then it means that people are finding your website more relevant and are more likely to click on it.

Conclusion

It can be difficult to measure the ROI from an SEO campaign. You may see increases in website traffic and conversions, but it can be hard to determine how much of this is due to the SEO efforts and how much is due to other marketing initiatives.

Emphasize that traffic isn't the only metric you should be tracking.

There are several factors to consider when trying to determine whether your SEO campaign is successful. These include:

-Website traffic: This is one of the most common measures used to gauge SEO success. However, it's important to remember that not all website traffic is equal. You should also look at the quality of traffic, as well as the quantity.

-Conversions: Another common metric used to measure SEO success is conversion rate. This measures the number of visitors who take a desired action on your website, such as filling out a form or making a purchase.

-Keyword rankings: Another way to measure SEO success is by tracking your keyword rankings. This refers to the position of your website's keywords in search engine results pages (SERPs).

-Engagement: Finally, you should also look at engagement metrics such as time on site and bounce rate. These measures can give you insights into how users interact with your website

Want to know if SEO is right for your business? We'll perform a free SEO audit that will give you a blueprint of what to fix on your website and estimate what the effort will cost.

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FAQ about SEO as an investment

You or you're boss probably have more questions about the ROI of SEO. I want to clear them up for you to finally get the SEO support that your marketing team will need.

Is SEO a good investment?

The short answer is yes, but it's not always easy to tell how much of an impact SEO will have on your business. Typically, a good SEO campaign will not just improve your website performance, but it will improve your Facebook and Google ads performance from all the extra data those pixels will capture.

Does SEO work for small business?

With paid advertising, bigger companies can always outspend smaller businesses but with SEO, it's a mostly level playing field. It depends on the niche you are in and how difficult it is to rank for relevant keywords.

Is it worth hiring an SEO expert?

If you're looking to get results quicker then it's worth hiring an SEO expert or agency. By hiring an SEO (agency or expert) you cut out the time it takes to learn  SEO and acquire the experience they've accumulated over the years.

How much does SEO cost?

The cost of an SEO campaign varies depending on the size of your business, the scope of work, and the experience of the agency. Typically, an SEO campaign will cost $1,000-$10,000 per month.

How long does it take for SEO to work?

The answer to this question depends on the competitiveness of your industry and how much work needs to be done. In a highly competitive industry, it could take 3 -12 months to see results.

What are the benefits of SEO?

Some benefits of SEO are that it is a long-term strategy, it's cost-effective, and it can help you achieve your business goals.

How do I calculate the ROI of a keyword?

To calculate the ROI of a keyword, you need to take the following steps:

1. Determine your website's average conversion rate

2. Determine the average order value

3. Estimate the traffic for the keyword

4. Calculate the ROI

Will SEO be profitable for my business?

The profitability of SEO depends on a number of factors, including the competitiveness of your industry, the amount of work that needs to be done, and your business goals.

 

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