Determining how many conversions you’re getting or where your content is ranking in search results are important to tracking the effectiveness of your SEO marketing efforts. However, determining the return on investment (ROI) of your search engine optimization (SEO) efforts can be more important.
Many investors and board members are primarily concerned with this bottom line: Is what you’re doing making your company money? To answer this question, you’ll need to learn how to determine the ROI of your SEO marketing campaigns.
How to determine the ROI of SEO campaigns in three easy steps:
- Determine the amount invested — It can seem harder to figure out how much money your company has invested in SEO than pay-per-click (PPC) ad campaigns. However, determining this amount isn’t as hard as you might think. You’ll simply need to add up all the costs associated with your SEO efforts, including:
- In-house SEO work costs.
- Costs for outside SEO agencies you’re working with.
- Costs for SEO tools your business is using.
- Find out how much revenue your organic traffic generated — Organic traffic is the SEO content that you create that ranks in search results. You’ll need to find out how much revenue your organic traffic generated over a certain period of time to calculate SEO ROI.
The easiest way to do this for e-commerce businesses is to find the organic traffic revenue readout in Google Analytics or other tracking programs you’re using. Lead-based businesses may need to set up custom goals in Google Analytics to help you determine an average value of each lead and goal value of the leads you’ve generated.
- Calculate ROI — It’s relatively easy to calculate the ROI of your SEO efforts after you have the amount invested and the organic traffic revenue or lead goal value. You simply use this formula:
(Value of conversions − Cost of investment) / Cost of investment
As an example, let’s say your business made $500,000 off of conversions and you invested $10,000. You plug these values into the formula, like so:
($500,000 − $10,000) / $10,000 = $49
This means that for every dollar you spent on SEO you got $49 in revenue back. Multiply this result by 100, and you’ll get an ROI of 4,900%.
Want to improve the ROI of your SEO marketing efforts? Burg & Co. can help
Increasing traffic to your website plays a role in increasing conversions and bringing in new clients and revenue. However, it’s difficult to attract visitors to your site when you don’t know what to do. Fortunately, this is what we specialize in at Burg & Co.
Our team has years of experience in helping businesses improve their digital presence to attract new leads and retain existing ones. If you’re looking to perform better in search engine results and attract more visitors to your site, we’re ready to talk to you to see how we can help. Contact our team today for more information about digital marketing or to schedule a complimentary consultation.