SEO ROI: How Is It Measured?


Search engine optimisation is one of the most useful digital marketing strategies you can make use of. It is the process of generating as much web traffic as possible by making your company’s website rank higher in online search engines. But how can you measure the web traffic, and how can you tell whether the strategy is working? How do you know you are getting a return on your investment? The following explains how SEO ROI is measured.

Measurement Calculation

A Basic Formula

The digital marketing agency that you hire will be using a calculation method to determine the return on investment. Typically, the formula is the difference between the gain from investment and the investment cost divided by the overall cost of investment. Once you have the result, you can multiply this number by 100 to get the return on investment in a percentage.

But before this calculation is used, you will need to determine your company’s revenue after applying the SEO marketing strategy at a given period. You can use monthly or quarterly revenue, depending on how long you have been using the strategy. The resulting percentage you get using this formula will show you how much returns you have received using the strategy. You can now compare and contrast previous return on investment percentages you obtained from employing other digital marketing strategies.

Interaction Analysis

If you want to be even more thorough with the results, you can use the data gathered while your digital marketing strategy is in place. A simple revenue calculation might not directly show how often customers make a purchase. The number of clicks is countable, but how many of these clicks generate client purchases?

One way to get this data is by analysing the latest interactions of each visitor. Some customers might click your website, browse the available products or services, and not purchase anything. This data will be used for further strategic planning. However, there will be those who come back to make a purchase.

Instead of getting redirected to your website, they might type the URL of your website. These searches may not look like they were generated because of the search engine optimisation strategy. But in this case, SEO did play a big part for the client to come back and make a purchase. Analysing this data can help strengthen the return on investment you have initially calculated.

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How Often Should SEO ROI be Calculated?

You can calculate the revenue as often as you want. But you would get a better idea of the actual return on investment by calculating the percentage after a certain time frame. Some would opt to calculate the ROI a month after incorporating the search engine optimisation strategy into their marketing structure. Others would do it quarterly or even yearly. In the end, it is about finding a long-term strategy that will work for your company, so you should not be discouraged right away if you have only calculated the first month or the first quarter. Instead, continue to improve the strategy in place to get the best possible results.

Calculating the return on investment of the marketing strategy you have invested in can show you whether the strategy is working or not. It is a way for you to know which strategies generate the most web traffic and thus increase your online presence. It can be overwhelming with all of the numbers and percentages, which is why it is better to hire a digital marketing agency to work on and calculate the SEO ROI for you.

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