How To Calculate The ROI Of SEO Campaigns

One of the popular terms you’ll hear a lot when you’re a digital marketer is ROI. These three letters can make or break your career in the field. From an SEO perspective, the term may be more relevant than you think. You’re probably guessing that SEO is an organic field, which isn’t about how much money you pump in. There’s a concrete reason as to why even big-shot digital marketing agencies focus on their SEO strategies so much. If you play your cards right, the ROI in SEO you can get from your campaigns can be highly profitable. How do you go about guaranteeing consistent ROI every time? It’s a skill that every digital marketer has mastered over time. Today, it’s your turn!

Why ROI in SEO?

Why ROI in SEO
Why ROI in SEO

This question is probably buzzing in your mind, right off the bat. Why measure ROI for something organic in the first place? The short answer is, if you want to have something to show for your efforts as an SEO analyst, ROI is your go-to metric. Your higher-ups will want to see results, and they won’t settle for random statistics that make no sense to them. What the executives will want to know is your SEO return on investment. We’re not just talking about money. If the management feels that efforts and workforce are being wasted on SEO, they may even relegate your responsibilities. Long story short, you’ll want proof that your SEO campaigns are driving conversions and profits for your clients. How do you go about guaranteeing these results? By dedicated ROI calculation.

The Initial Phase

The Initial Phase - SEO Return on Investment
The Initial Phase | SEO Return on Investment

Let’s say you want to calculate the ROI of the last full-fledged SEO campaign you run. Right off the bat, we seem to be brick-walled, because there’s no objective way to calculate the profits you get from an SEO campaign. This isn’t a Pay-Per-Click scenario where you can put a number on every single click that you get. Organic results are also gaining good traction nowadays, so it’s essential to come up with accurate calculations for ROI in SEO. The solution, of course, is to start with what we already have and know.

  • At the onset, you should take stock of the existing parameters in your SEO toolkit.
  • Take a good look at your team and check how many work-hours they pump in to execute their campaigns. If you hire freelancers, take stock of the hourly payments they get.
  • Next, turn your attention to the services and tool memberships that you employ. Chances are you pay good money for those, so you can’t just ignore that expense!
  • For the next part, you need to factor in the fixed working costs associated with your SEO work. If you work in a Digital Marketing agency, this means taking into consideration the retainer fees that you charge, if any. After all, ROI is about the money that goes in on both sides!

When you start tallying the cumulative investment that you put in for your SEO campaigns, you should get an idea of one part of the ROI equation: investment. That is just one piece of the SEO return on investment puzzle, however. How do you begin estimating the returns part of your SEO efforts? Let’s find out!

Read More: SEO services

What You Reap

What You Reap - How To Calculate The ROI Of SEO Campaigns
What You Reap | How To Calculate The ROI Of SEO Campaigns

First things first, you have to understand that there’s no hard and fast method to calculate ROI across all websites and platforms. That being said; however, the ways to calculate ROI in SEO are relatively similar across the board. For the most part, Google Analytics is your best bet to get a solid grasp on your net returns from SEO.

There’s no denying that one of your primary sources of income on the Web is going to be from your e-commerce portal. Let’s focus on that first.

  • Thankfully, Google Analytics works wonders if you have it set up correctly to monitor your e-commerce.
  • Using the Conversions tab, you can sort the channels by Organic Traffic and filter for revenue. If you want a concise statistic about your return on investment in SEO from e-commerce, this is where you need to be.

Leads are a little trickier to figure out in terms of returns. Why? Because lead generation campaigns can come with vastly different goals between them. How do we figure out SEO ROI on lead generation campaigns, then? It’s quite simple.

Leading The Way

Leading The Way - ROI in SEO
Leading The Way | ROI in SEO

The problem with ROI in SEO calculation for leads is that there isn’t always a tangible value associated with every lead or conversion. Yet again, Google Analytics comes to the rescue in this case. Since lead campaigns vary in their purpose, you can go ahead and use Google Analytics’ custom search feature to specify your goals.

  • You can access this feature from the Admin tab in Google Analytics.
  • Through the three parameters of goal setup, goal description and goal details, streamlining your search for specific lead types is a breeze.
  • Once you assign a fixed monetary value for the goals you set, the platform will give clear insights on your conversion rate in SEO lead generation campaigns.

How do you work out the monetary amount for ROI in SEO? Don’t worry; there’s a clear-cut formula for that as well!

To obtain the monetary value to input for your lead generation campaigns, multiply your customer lifetime value metric with the conversion percentage you see on the platform. This should give you a competitive monetary statistic that you can use to filter for ROI calculations.

With this step complete, you should have all pieces of the puzzle ready to address the question of ROI in SEO. Are you wondering about the final formula to accurately calculate your SEO efforts’ ROI? Read on!

Related Post: How to set goal in Google Analytics 

SEO Return On Investment: The Surefire Formula

ROI Formula - SEO Return on Investment
ROI Formula | SEO Return on Investment

The truth about calculating ROI for SEO campaigns is that it takes longer to source the parameters than it does to calculate the ROI!

Once you have all the variables, all you have to do is input the values into the following formula to get your net ROI.

If you followed the above steps to the T, then you should have everything you need to get a concise value for the ROI.

For example, if you earned ₹20,000 from your campaigns and it cost you ₹5,000 for the SEO, then when you input it into the formula:

20,000-5,000 = ₹15,000

₹15,000/5,000 = 3

To put this into perspective, you made a profit of 3 rupees for every one rupee you spent. In other words, that’s a 300% ROI. Exceptionally positive, don’t you think?

Read Also: Why Digital Marketing Agencies booming in Chennai

Smarter SEO With ROI Calculation

Smarter SEO With ROI Calculation - ROI in SEO
Smarter SEO With ROI Calculation | ROI in SEO

 Deciphering the precise ROI of your SEO campaigns isn’t a hassle at all. Knowing the SEO return on investment is a matter of research and simple maths. With the tips here, you can optimize your work as an SEO analyst with ease! Let us know in the comments about the ROI you’ve achieved with your campaigns!

FAQs – How To Calculate The ROI Of SEO Campaigns

1. Does SEO have a good ROI?
Yes, if you know how to calculate the ROI of SEO you will find out that it has a good ROI. SEO enables you to maximise the return on all of your marketing efforts.

2. How to calculate the ROI of SEO campaigns?
The formula on how to calculate the ROI of SEO is the Returns (Benefit) divided by Investment (Cost). Refer to the blog to know in detail about the variables.

3. What is ROI in SEO?
If you want something to show for your efforts as an SEO analyst, ROI is the metric to use. Your superiors will want to see results, not random statistics that make no sense to them. This is why you should learn how to calculate the ROI of SEO.

4. What is the formula of calculating the ROI of SEO campaigns?
The formula on how to calculate the ROI of SEO campaigns is the Returns (Benefit) divided by Investment (Cost). Refer to the blog to know in detail about the variables.

5. What does SEO do for a company to increase ROI?
Instead of your website performing at a fraction of its full potential, you can boost ROI by investing in search engine optimization strategies that encourage search results to rank more of the websites you’ve already paid for.

6. How much should I invest in SEO?
Reputable SEO organizations in India will usually charge you between Rs 25,000 and Rs 4 lakhs per month for a local business targeting a niche audience to a brand targeting a country wide audience.

Sorav Jain

Sorav Jain is one of World's leading digital marketing influencers. He started his career as an SEO specialist and, in 2010, went on to establish echoVME Digital, one of the top digital marketing agencies in Chennai. At echoVME Digital, Sorav Jain works closely with his team to bring out the best digital marketing and social media solutions for brands across India. In 2019, he also founded Digital Scholar, the educational extension of echoVME that offers digital marketing training for enthusiasts from all walks of life. In addition to being a digital marketing agency and digital marketing training institute owner, he is also a keynote speaker, consultant, and author, with 5 books to his credit to date.

Sorav Jain is one of World's leading digital marketing influencers. He started his career as an SEO specialist and, in 2010, went on to establish echoVME Digital, one of the top digital marketing agencies in Chennai. At echoVME Digital, Sorav Jain works closely with his team to bring out the best digital marketing and social media solutions for brands across India. In 2019, he also founded Digital Scholar, the educational extension of echoVME that offers digital marketing training for enthusiasts from all walks of life. In addition to being a digital marketing agency and digital marketing training institute owner, he is also a keynote speaker, consultant, and author, with 5 books to his credit to date.

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debora
debora
1 year ago

Thanks for sharing, this article is extremely great and it is very useful for users. Thanks and keep Sharing.

GST Dealer in Jaipur
GST Dealer in Jaipur
1 year ago

Thanks for sharing this useful article.