In this digital age, your business outreach depends more on how you plan your SEO activities. Yes, if you want concrete results from your SEO marketing campaign, you must understand how to make it count. Now, you must be wondering how it is possible. It is through return on investment you would measure the success of SEO investment.
Return on investment or ROI is the measure that helps you to understand how much profit your business is making for a given period. Measuring the ROI for your SEO efforts is a crucial step to converting your SEO campaigns into financial value. This way, you understand how much money you can make by implementing your SEO strategies and campaigns. To make use of SEO, you must invest money in it. Hence, you also need to ensure you get a sufficient return for your investment.
If you think that some of your SEO strategies and methods are not working the way they should, or you are unable to secure substantial profits for your business, you can then inculcate some new strategies to help you gain more profits. If you have an in-house SEO team working towards the promotion of your business, you need to come up with ways to measure the ROI of your SEO efforts to evaluate the progress you are making. If you hire any external service provider to handle your SEO requirements, they would involve some specific parameters to help you measure the ROI to help you track the performance of your marketing campaign.
On average, businesses obtain about 53% of their total traffic from organic searches. Hence, you must get a clear idea about the number of business returns you generate through your SEO efforts. So, here is a look at the methods you need to follow to measure the return on investment of your SEO campaigns.
The first thing you need to do is appropriately calculate the sum of money that you are investing in your SEO efforts. Some avenues in which you may need to spend your resources include an in-house SEO team and/or SEO agencies and freelancers. The in-house SEO team includes employees who handle your SEO work at all times. Hence, you need to calculate their compensation in that way.
Some other employees like developers or copywriters might work for you occasionally, and you may need to calculate their compensation based on a daily or hourly rate. If you are hiring SEO agencies and freelancers for your SEO purposes, you would probably need to provide them with a definite monthly fee. Freelancers tend to have their rates, and you need to incorporate that into your calculation. If you are using apps and tools to perform tasks like keyword research, you will need to add a monthly cost that you incur for them to your total costs.
With the help of Google Analytics and other similar tools, you can analyze and determine the revenue you earn through your organic search. Keep in mind that the type and nature of the conversions you need to track and the value you assign for them to depend on the nature of your business. If you are the owner of an e-commerce business, you will need to work on the sales data you can obtain from your online transactions.
After you have obtained all the necessary figures, it would be easier to calculate the return on investment for all your SEO efforts. The SEO ROI for your business can be calculated as the value of conversions. It is the cost of the investment divided by the return on investment. So, imagine that your cost of investment for a single month was $20,000, and you generated a total of $100,000. It means that for every single dollar that you spent on your SEO campaigns, you obtained a return of $4. Hence your ROI for your SEO campaigns is 400%.
One of the cornerstones of success for your business is how well you can forecast the ROI of your SEO efforts. To achieve this goal, you will need to consider the past SEO performance of your website, the average rate of conversion of your business, and the traffic potential that you have. Forecasting can help you to allocate resources for your SEO campaigns and also make necessary adjustments in terms of SEO.
ConclusionToday, SEO is a universal term concerning its growing prominence and efficiency in the business world and in promoting any business venture. Companies, irrespective of their nature, calculate the return on investment from time to time by analyzing their business rankings on search engines, organic searches, and the achievement of their business objectives and goals. Hence, SEO marketers and managers give a lot of significance to the allocation of marketing resources and budgets in making it a much more straightforward procedure.
