Measuring the Return on Investment (ROI) of SEO is crucial for your business. Because it determines whether you are getting benefit from your investment or not. Meanwhile, if you get profits from your investment, it encourages you to put more effort into your business to get maximum benefits. There are several SEO Companies in India which help you calculate the ROI of SEO.
What is SEO?
SEO, which stands for Search Engine Optimisation, is deemed as the practice of optimising the web pages so that they appear on top of Google’s search engine. If you are able to appear on the top page, there are chances of more clicks on your website. In simple words, the goal of SEO is to improve the ranking of your website on the search engine.
What is the ROI of SEO?
In simple words, we can say that ROI of SEO can be classified as the profit you get from what you have invested in SEO. And it is one of the most concerns for SEO managers. If the revenue you generate is higher than its cost, it is deemed as the positive return on investment. SEO does not work at a fast pace, so measuring your ROI of SEO is complex because it takes time to see significant SEO results. But it’s still an important KPI (key performance indicator) to measure.
Why is the ROI of SEO Necessary for Businesses?
According to BrightEdge Research, the average business gets 53% of its traffic through organic search. Additionally, it is said that almost every purchase involves organic search in some way or the other. So, it is crucial for you to understand the benefits that SEO drives for business. On the contrary, if you don’t know how much money you earn from every investment in SEO, you cannot determine what’s working or not.
What are the Challenges in Determining ROI of SEO?
It is not always easy to get the desired results from the SEO’s ROI. Because no one knows when and how Google will rank your website. Even if your content is rich in SEO keywords, it may not rank on top due to various reasons ranging from algorithm updates to technical issues of the website. Although you might believe that you understand Google’s preferences, you cannot control everything as they are highly dynamic. Also, you cannot be sure of the performances of the campaign you initiated. Moreover, you don’t have the SEO performance guarantee. SEO is a long-term solution, and bit by bit, things begin to take effect. So for the people who are accustomed to seeing immediate results, SEO can be seen as a burden.
How to Calculate the ROI of SEO?
The ROI of SEO measuring formulas is simple. It is like calculating the ROI of any other investment. Basically, SEO profit divided by SEO costs.
SEO ROI = (value of conversions – cost of investment) / cost of investment.
Let’s analyse the same.
- Measure Your SEO Investment
You need to calculate the cost of total investment in SEO. For doing so, you have to add all the money you spend in the process such as copywriter cost and tools cost, etc. You surely have paid a copywriter who writes the SEO related content and for purchasing SEO tools. So, add the money you have spent on the copywriter as well as on tools.
- Discover Your Click Through Rate
It is the percentage of users who do the relevant search and then click to your site is known as SEO click through rate. Organic search click-through rates are determined by where your content appears on SERPs. If it appears on the top, it is more likely to get clicked.
- Analyse Conversions
It is calculated by the percentage of visitors who come to your website and they actually do business with you. There are several tools, such as Google Analytics, to measure conversions with respect to the website’s traffic.
- Perform Keyword Analysis
For calculating the ROI for your SEO strategy, the SEO calculator would require information, like which keywords you are planning to use and what each keyword’s monthly search volume is. Once you get these information, simply add them to the ROI of SEO calculator.
Conclusion
Knowing the ROI of your SEO is a powerful way to prove you are making the right efforts. As marketers, now you know that SEO is worth the investment. If you can prove a stable ROI on SEO, it will be easier for you to get further investments in talent, new tools, and more. You can contact Kutumbh Digital, an SEO agency in India, for ROI of SEO and many other things.