Do you want to know how to measure your SEO ROI? Then, this guide is for you, as it delves deep into this. A business investing in search engine optimisation (SEO) must know the ways to measure whether it is scaling its website or its investment is yielding no results.
This guide will help you understand the ROI measurement for your SEO investment to see what changes you need to make.
What Is SEO ROI?
It is a measure of how much revenue a business generates from SEO services in terms of what it spends on SEO activities. The reason to measure it is to know if your SEO is actually giving you results.
The Basic Formula:
ROI = (Revenue from SEO – Cost of SEO) / Cost of SEO x 100
For example, if you spend £2,000 a month on SEO and generate £8,000 in revenue from organic search, your ROI is
((£8,000 – £2,000) / £2,000) x 100 = 300%
Step-by-Step Guide to Measuring SEO ROI
Track Your SEO Costs
The first step is to track your SEO costs related to every service you pay for, like freelance or SEO services in UK providers’ payments, content creation costs, using SEO tools, and paying salary & benefits to the internal team. Measuring both indirect and direct costs can help you get the full picture.
Set Clear, Trackable Goals
Knowing your goals is the only way to know if your SEO goals are working or not. Here are a few goals: an increase in traffic, improved rankings of keywords, online sales or conversions, and more. When you are clear about your goals, setting strategies for measuring ROI in specific terms becomes easier.
Use Tools for Knowing Revenue
Use analytics tools like Google Search Console, Google Analytics, and Google Tag Manager for tracking sales by channel. For instance, if you have an online shop, you can use eCommerce tracking. Or you can use UTM parameters to measure ROI on blog post CTAs.
Monitor Key SEO Metrics
There are different SEO metrics for measuring SEO effectiveness. These include organic traffic, keyword ranking, conversion rate, and CPA. Moreover, bounce rate is an effective measure for organic sessions in SEO ROI measurements. However, do not just focus on the number of traffic or keyword ranking; focus on whether it is coming from quality leads, high-authority websites, nd whether users are converting to consumers or not.
Estimate Revenue from SEO Traffic
If you’re a lead-based business (e.g., B2B services), estimating revenue might require some calculation:
For a B2B or lead-based business, revenue estimation requires calculation, too. For this, you need to estimate the conversion rate and multiply it by the lead close rate (form submission converted into paying clients) and by the average deal size.
Example:
- 1,000 organic visitors/month
- 5% conversion = 50 leads
- 20% close rate = 10 clients
- Average client value = £500
- Revenue from SEO = £5,000/month
Compare the Measures Against Cost
Now, use the numbers in the ROI calculator for measuring the ROI.
For example, if your monthly cost is £1,500 and your revenue is £5,000, the ROI is
((£5,000 – £1,500) / £1,500) x 100 = 233%
That means for every £1 spent, you’re earning £3.33 back.
Challenges in Measuring SEO ROI
- SEO is continuous; expecting results in 3-6 months is not the right approach. Be ready to give it several months with continuous efforts to get results.
- Sometimes SEO is the reason for a buyer converting, but it can come from other channels, so giving SEO credit becomes challenging.
Best Practices for British Companies
Localise your SEO tracking.
It is best for UK companies to track local SEO performance separately, especially if you serve specific areas like London or Windsor.
Align SEO with business objectives.
Moreover, your SEO agency should align keywords, content, and campaigns relevant to your business goals for better measurement and strategies.
Avoid metrics with no actual conversions.
If your increase in traffic or a blog ranking for keywords does not bring any conversions, it is not the right measure of ROI.
Final Thoughts
For a company anywhere, irrespective of location, SEO is a massive digital investment. However, if you cannot measure it properly, scaling your business is impossible. When you understand how to calculate and interpret ROI, it becomes easier to hold your SEO partner accountable. It helps SEO experts to not just bring quality traffic but to grow a brand based on trust and growth. So, use the above guide and measure your SEO ROI today for better strategies.
