Measuring return on investment (ROI) from search engine optimization (SEO) can be a challenging task. Unlike paid advertising campaigns, where metrics like click-through rates and conversions are easily measurable, SEO outcomes are often more difficult to quantify. However, by leveraging various tools and techniques, it’s possible to measure the ROI from SEO efforts.
Analyze Revenue from SEO
To calculate the ROI from SEO, you need to first analyze the revenue generated from organic search. Use Google Analytics or any other analytics tool to identify the revenue generated from organic search traffic. This could be from direct sales or leads generated from contact forms or phone calls.
Determine SEO Costs
Next, you need to determine the costs associated with your SEO efforts. These costs may include the cost of SEO tools, content creation, link building, and any SEO agency fees. Make sure to include all direct and indirect costs associated with your SEO efforts.
Calculate Net Revenue from SEO
Subtract the total SEO costs from the revenue generated from organic search traffic to determine the net revenue generated from SEO.
Calculate SEO ROI
Finally, calculate the ROI by dividing the net revenue from SEO by the total SEO costs and multiply by 100 to get a percentage. For example, if your net revenue from SEO is $50,000 and your total SEO costs are $10,000, your ROI would be 400% ((50,000-10,000)/10,000 x 100).
It’s important to keep in mind that SEO is a long-term investment and it may take several months to see results. As such, it’s essential to track your revenue and costs over a significant period to get an accurate picture of your ROI from SEO.