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How To Calculate The ROI Of SEO Campaigns

how-to-calculate-roi-of-seo-campaigns

You can use several metrics to determine the ROI of SEO campaigns like Google Analytics and monitor traffic. Measuring ROI is one of the most critical factors that impact SEO strategies. Several decision-makers would require the leads, traffic, and sales generated to evaluate the results. Read through the blog to unravel how to calculate the ROI of SEO campaigns. 

SEO ROI is a metric that calculates the return on investment for search engine optimization. Companies can calculate the SEO ROI by examining search engine rankings, organic website traffic, and goal completions.

As a leading SEO agency in Chennai, our SEO professionals calculate the ROI of SEO campaigns in the following ways

One of the standard formulas that our company uses to determine the ROI of SEO campaigns is the 

SEO ROI formula: (Gain from Investment – Cost of Investment) / Cost of Investment.

What does ROI mean for SEO? 

The ROI of SEO means returns on investment of all the SEO activities or campaigns the SEO professionals perform. If the revenue generated by your SEO strategy exceeds the cost, you will have a positive return on investment. In a nutshell, the ROI of SEO campaigns is a critical KPI (key performance indicator) to track, as it will determine the preceding strategies to be implemented by the professionals. 

SEO or PPC 

If you need help debating what’s better: SEO vs PPC

 then you aren’t alone, as several global brands and digital marketing agencies argue regarding this matter, which is better for generating better ROI and leads. You can capitalise and generate organic search rankings with SEO strategies. On the other hand, PPC will generate immediate returns once you deploy ads. With increased organic traffic, your SEO ROI can grow exponentially by improving credibility and authority. 

ROI of SEO vs PPC: If your question revolves around which one is a better investment, we will discuss the implications of implementing both strategies. If you aim to produce more leads or sales, PPC can be a good investment option, depending on the product. However, SEO is the best option in the long run, as it will generate high-quality leads and garner more returns, along with significant SERPs. While investing in SEO, you can expect enhanced visibility and reach in your website or campaigns, among other techniques. 

Consider SEO if you want the following: 

  • Generate returns on a longer-term
  • Increase the brand authority  
  • Enhance targetted traffic

Conversion tracking for ecommerce sites

As a freelancer or a digital marketer working for an ecommerce brand or company, it is vital to determine the ROI of SEO campaigns. Google Analytics is a prominent ecommerce tracking solution that offers a holistic way to determine keyword research, analyse the bounce rate, and optimise conversions. If you want to ace digital marketing for ecommerce brands, utilising tools that collect and track data is vital. With the help of Acquisitions data, professionals can garner the traffic generated. 

Track your performance by paying attention to a few metrics like 

  • Bounce rate,
  • Average order value,
  • Time spent on the page

How to measure the ROI of SEO? 

Determine average click-through rate

Several metrics and measures, along with keyword tracking and conversion, will provide a clear picture of the ROI of SEO campaigns. Once you have the keyword-related data, you can exercise them to determine the campaign’s click-through rate and average ranking position. Suppose you work for a digital marketing agency, especially for a B2B brand. In that case, having this data will determine the clicks, traffic, and revenue generated pricing to be one of the significant benefits of SEO for ecommerce brands. 

  • Estimate the organic search volume for your keywords through tools like Google AdWords keywords planner
  • Determine the CTR to calculate the average positions and traffic generated
  • Perform the final calculation with the help of an SEO analyst. 

Analyse the conversion tracking

Once you’ve determined which conversion actions are economically valuable, you should begin tracking those actions in Google Analytics.

Google Analytics provides a wealth of data on how much time users spend on your site, how many pages they view, and much more. The next step is to link Google Analytics with your Google Search Console, which will determine and offer valuable information on goal completions and campaign traffic. To get more accurate ROI calculations, link Google Analytics with the CRM platform, and the data will automatically be funnelled and show the leads originated from the organic search. 

If you are planning to run ad campaigns on the Facebook platform for your brand,  then you can perform Facebook bidding strategies to determine and gauge the budget, and ROI from them, to leverage the best results from the target audience.

Get more detailed keyword tracking

Most SEO operations begin with keyword tracking. If you have a Google Ads account, you can start by using Google’s Keyword Planner. All you need are the keywords you want to target and the search volume data. Later you can compare the keyword search terms and estimated volume aimed for in the campaign. You need to gain 12 months of data for all the keywords to determine the SEO ROI. After determining the potential traffic number, you can multiply it by the product’s conversion rate. It is vital to understand the keyword importance in digital marketing, as the success of any SEO campaign relies on it. 

Calculate your ROI percentage

You can calculate a much more accurate picture of the ROI of your SEO investment by plugging in your total conversion and revenue values determined in above mentioned steps for the selected period.

Why understanding your SEO ROI important? 

Calculating and understanding SEO ROI is essential, as it helps to enhance online visibility and boost reach. It is vital to understand this concept, as it is one of the biggest returners for digital marketers and professionals. After enforcing the SEO plan or strategy, it is vital to determine the following components: 

  • Keyword rankings
  • Conversion rate 
  • Bounce rate 
  • Organic search results 

With more conversions from SEO and organic traffic, you can see how revenue increased compared to before the SEO plan was implemented.

But then you must delve deeper. CAC, or Customer Acquisition Cost, is an excellent KPI to consider. It demonstrates how much the company must spend to convert a single customer.

What is a good ROI for SEO? 

Certain factors determine the ROI of SEO and its success: 

  • Increase in overall visibility and reach
  • Increase in on-page conversions
  • Increase in reach of SERPs

Final Thoughts 

We hope the above-listed points gave you significant insights on calculating the ROI of SEO campaigns. It is one of the crucial aspects which is the heart of any successful SEO campaign. So kickstart your SEO campaigns, perform keyword research, and if you require technical expertise, hire a digital marketing agency in Chennai – echoVme Digital, that offers 360-degree marketing solutions, top-notch SEO services, website development and blogging services. 

Make robust SEO-driven ROI strategies with echoVme Digital,

echoVME Digital, one of Chennai’s best digital marketing agencies. Our team comprises young people who curate the best SEO-driven ROI strategies for businesses of all sizes. We go to great lengths to provide the best digital marketing services. echoVME Digital provides a comprehensive marketing strategy incorporating SEO, social media marketing, search engine marketing, and corporate blogging services. 

Key Takeaways

  • Perform keyword research, and estimate the traffic and revenue. 
  • Set tools to collect data and perform conversion tracking for effective results
  •  Identify the value of each conversion goal 
  • Lastly, calculate the estimated SEO ROI of the campaign. 

Faqs

1. How do you calculate the ROI of SEO campaigns?

Take the sales growth from that company or product line, subtract the marketing costs, and divide by the marketing costs.

SEO ROI formula: (Gain from Investment – Cost of Investment) / Cost of Investment.

2. Does SEO have a high ROI?

With so many factors influencing SEO success, the long-term ROI that this traditional marketing strategy provides is extremely valuable. You should consider the following: 

  • Bounce rate
  • Traffic
  • Average rating position

3. What is a good ROI in e-commerce?

Determining a good ROI for e-commerce is difficult because there are no set criteria and many variables influence it. However, an average of 25-50% is considered a good ROI for e-commerce brands. 

4. What is a good ROI in the campaign? 

The standard rule of thumb for marketing ROI is a 5:1 ratio, with exceptional ROI around a 10:1 ratio. A 2:1 ratio is considered unprofitable.

Rohith

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