How much do you invest in SEO each month and how do you estimate the value of your investment?
If you want your website to rank high on Google searches and attract visitors and potential businesses, invest in SEO. And because many companies say they don't invest in SEO campaigns at all, with just a few tweaks, you'll be ahead of much of the opposition.
To get the most out of your expenses, consider the basic SEO ROI formula: SEO revenue – SEO cost ÷ SEO cost = ROI.
What you spend and what you earn from your website depend on several factors including:
- Business type
- Company size
- Size of competition
- Site size
Understanding how to calculate the ROI of your SEO campaigns based on the KPIs you set is important for any business.
What is an SEO Campaign?
There are two main types of search engine optimization: on-page optimization and off-page optimization.
On-page optimization improves the online visibility of a single page by incorporating well-researched keywords into the content and HTML source code.
Off-page optimization increases the visibility of a page or website through links from websites and other signals that take place in a different location than your website, e.g. B. through social media activities, advertising and other promotional methods.
How does an SEO campaign work and how much should you pay?
The cost of your campaign will depend on the expertise and knowledge of the person or company doing the search engine optimization. The success of the campaign depends on the skills of that person or company.
So what are you paying them for?
- Find the best keywords and related long-tail keywords for your business
- Use these keywords to structure your website to suit your ideal prospect
- Formulate content strategies to drive engagement and sales
- Gain traffic from your competitors
- Monitor the traffic on your website for broken links and slow page speeds
- Stay up to date with new algorithms that may cause your traffic to pass through
Ultimately, you hire an SEO professional to get your website to the top of Google search pages so you can make more money. Who you choose to work with depends a lot on your budget. If you choose someone who offers to manage your SEO for $ 100, your ROI will reflect that price. You get what you pay for, as they say.
How do you define and measure the ROI?
Here are some common ways to measure SEO ROI:
- Actual sales or orders from your ecommerce website
- Click rates
- Affiliate sales
- Number of visitors to your website
Investing in SEO requires a Google Analytics account tied to your website. It's a free but valuable tool that provides insight into the success of your SEO efforts.
To calculate the return on investment of search engine optimization campaigns using Google Analytics, you need to (1) set up tracking and (2) monitor sales or website traffic. They can then use the data you have collected to infer the ROI.
Set up conversion tracking
A conversion occurs when a visitor to your website becomes a customer. A customer is anyone who makes a purchase on your ecommerce website or any affiliate website that you refer them to.
To set up Google conversions, go to the homepage of your Google Analytics account. In the left sidebar titled Reports, click the lower option. Conversions.
Monitoring of e-commerce sites
To determine the return on investment of SEO on an ecommerce website, you can track revenue directly from the website's account or track sales and visitors to the website by enabling ecommerce in Google Analytics.
To keep track of visitors, you should have some basic page tracking code on your website. If you're using a third-party shopping cart like PayPal, you'll need to set up cross-domain tracking so you can monitor visitors to both your website and the shopping cart.
Once you've added tracking to your website, you can monitor visitors, conversions, and sales from the analytics dashboard by visiting Conversions> Ecommerce> Overview.
Your website's return on investment doesn't have to be related to sales alone. It can refer to other goals as well. For example, you might want to get 100 people to sign up for a newsletter, or you might want 50 people to watch your YouTube video. These are indirect sales targets that target visitors who potentially become paying customers.
Monitoring of lead generating sites
If the website you're optimizing is generating leads rather than sales, you can still assign your conversion goals a monetary value based on previous sales history. For example, if 50 out of 100 people who signed up for your newsletter bought a product and each sale generated $ 10, that means those 50 people made $ 500 in sales.
For lead generation websites, create goals by walking on Admin> View> Goals in Analytics. A monetary value can be assigned to various parameters:
- Submission of the contact form
- Quotation requests
- Email inquiries
Estimate your average conversion rate based on the relevant goals in Analytics. Then, set goals to improve each conversion rate.
After about a month, statistics should show how much your website has earned and allow you to calculate your ROI.
For example, let's say you paid someone $ 10,000 to optimize your website and made $ 2 million in revenue. You would use the formula mentioned earlier: Income from the website – Cost of SEO ÷ Cost of SEO = ROI of SEO.
So in this example: 2,000,000 – 10,000 ÷ 10,000 = 199. Multiply the derived number by 100 to get a percentage – in this case 19,900%.
And there you have it. Again, the insight is that a small amount of optimization can generate significant returns.