Focus On ROI Rather Than Just Prices When It Comes To SEO

How To Focus On ROI Rather Than Just Prices When It Comes To SEO

How To Focus On ROI Rather Than Just Prices When It Comes To SEO

For a long time now, Business Owners believe SEO was all about ranking and nothing else. We pay most of our attention on getting our webpages to the top of the Google Page Rankings for a specific term, phrase or word; and whilst quality SEO is successful at accomplishing this goal, when it comes to ROI, the conversion process of Traffic to Cash is for most businesses an offline process; so although visibility is still important, the key is to focus on the conversion from Traffic to Enquiry, rather than just on the visibility element.

As all traffic is not generated equally, in order to increase converting traffic the focus initially is in identifying the sources of conversion, rather than just focusing on being ‘number one’ on Google. When looking for quality SEO, Business Owners should try to focus mainly on the returns their business requires to develop and not only on the price of the SEO services and the various rankings required. In short, SEO is like any other advertising stream – if it doesn’t at least pay for itself, let alone provide a return, then it is not worth pursuing. We always recommend an SEO audit to understand clearly any gaps that may obstruct progress or things that may need to be put in place. An SEO audit therefore will help you achieve clarity in both service and results.

ROI is perhaps one of the most important metrics. As a metric it is superior to both sales and conversions. The reason for this, is that ROI also takes into account the cost of investment. Working out the ROI of your SEO efforts is an incredibly important way of gauging the success of this channel.

However, working out ROI is not always as simple as it may appear. To demonstrate – first it is good to understand that there are two different types of ROI:

  • Anticipated ROI: This is the ROI that will be reported to you when a company is pitching to you. Its accuracy is largely down to the honesty of the company.
  • Actual ROI: This is the real return on investment that has been accomplished as a result of the SEO efforts.

So How Do You Work Out Your Actual ROI?

Actual ROI resulting from an SEO campaign can be worked out using this equation:

Actual ROI= Total Revenue through SEO + Total Brand Value through SEO minus cost of your SEO campaign + costs of supporting your SEO campaign.

Once this has been accomplished, the total ROI (or lack thereof) of the campaign can be easily seen. If the ROI is positive then it may be worth exploring internally, or externally with your contracted party on how you can better leverage these gains. If the ROI is negative then it may be worth trying something new, whether this is outsourcing your SEO, or seeking the services of a new digital marketing outfit.