- SEO ROI (return on investment) assesses the business value of all SEO activities differently for their price.
- This is one of the most common issues that any SEO consultant or manager needs to address when allocating marketing budgets and resources.
- Calculating ROI is very simple and straightforward.
- In SEO, there are several warnings you need to be aware of.
- Make measuring and describing ROI one of the most complex and challenging issues one faces in SEO.
To measure SEO ROI:
The ROI principle for SEO is very simple in summary:
SEO ROI = (value of organic conversion – cost of SEO investment) / cost of SEO investment.
Divide SEO profit by the associated SEO costs.
- 1. Calculate SEO investments.
- 2. Calculate the value of organic traffic conversions.
- 3. Account for the value of auxiliary exchanges.
The main challenges in measuring SEO ROI are:
One needs to be aware of these challenges in order to better calculate SEO ROI and all other relevant metrics.
1. The marketing attribute is inherently flawed:
- It is inherently flawed to attribute conversions to marketing channels regardless of the attribution model used.
- Customer trips and touchpoints are often more complicated than making the analytics software visible.
- Organic search traffic is a marketing channel that can extend the entire customer journey from awareness to retention.
2. The connection between SEO and brand-building:
- Let’s browse some YouTube videos and watch someone talk about an interesting product.
- Go to Google, Website and buy that brand or product.
- Receives 100% attribution for organic traffic conversion.
- Having strong SEO with high search visibility in SERPs across the entire funnel. It has the ability to change many possibilities from beginning to end.
- Social media ads, display ads and search ads get in the way and make a big contribution to conversion as they become more popular.
- Brand awareness and importance to create through own content production or by appearing in top-of-the-funnel content through Outreach.
3. The retention effect of SEO cannot be measured:
- Ahrefs is a great example.
- Create product-led content that constantly educates our (potential) customers about all the ways in which they can use our tools to solve their SEO and marketing problems.
- The retention effect of SEO can be divided into two categories:
- As people learn to use more and more from our toolset, they will start using the tool more and more, which will lead to lower chain rates.
- Content about the tools and features included in high-cost plans allows some people to upgrade their monthly subscriptions.
- SEO has the power to enhance customer lifetime value, as many content components also overlap with the retention and nurturing stages of the marketing funnel.
4. Huge time differences between “investment” and “return” periods:
- Variables in calculating ROI are investments and returns over a period of time.
- SEO takes a long time to deliver a return on investment.
- A good alternative to choosing arbitrary time intervals is to be more granular and start calculating the ROI at the category, page or keyword level.
5. SEO testing has limited capabilities:
- One way to better understand a marketing channel’s contribution to broader marketing goals is to stop campaigns.
6. Estimating Future ROI:
- A good way to do this is to consider the following factors when coming up with specific numbers:
- The past SEO performance of the page (s) or website and its competitors.
- Compound traffic potential of content.
- Estimate the average exchange rate.
- For SEO performance, looking at a website in Ahrefs Site Explorer is a good start.