Your Return On Investment
SEO ROI Calculator
Understanding the return on investment (ROI) from your SEO efforts is essential for making sure your marketing budget is being used wisely. Knowing your SEO ROI helps you measure the potential impact of your campaigns, and the value it could bring to your business.
How the SEO ROI Calculator Works.
This calculator estimates the value of your an SEO campaign by calculating how much traffic your website could potentially generate, and what that means in terms of revenue for your business. Once you understand the potential revenue an SEO campaign can generate, you’ll be able to make an informed decision about how much of your marketing budget you should allocate to SEO to help grow your business.
Your Monthly SEO ROI
What is SEO ROI?
Return on investment, more commonly known as ROI, is an important key performance indicator (KPI) that shows you how much profit you’re making out of what you’re spending. It’s crucial for measuring the success of your efforts over time, as well as providing you with the information you need to make critical decisions, including how much to reasonably invest in the likes of marketing.
SEO ROI (search engine optimisation return on investment) specifically will show you how well your organic search optimisation campaign is working, and how it’s performing in terms of boosting your online visibility, as well as increasing your leads and sales, and growing your business.
Why measure SEO ROI?
Around half of website traffic comes through organic search. While it’s important to keep track of your ranking positions, website traffic and sales and conversions from your site, there is nothing more empowering than to know precisely how much actual profit you’ve made from your SEO investment.
If you don’t know how much you’re getting back from your SEO investment, then how will you ever be clear on whether it’s working for you? How will you know whether you could be enhancing your return by scaling up? And exactly what you should be scaling up on?
Whilst measuring SEO ROI can never be an exact science (because online organic visibility is earned over time as opposed to being bought like paid advertising), you can use a simple calculation to measure how your SEO investment is performing.
How to measure SEO ROI?
To begin with, calculate the cost of your SEO investment, including in-house and external resources, and anything spent on SEO tools.
Next, measure the value of your sales conversions (how much you’ve actually earned from your campaign). You can do this using Google Analytics.
Now take the value of your sales conversions, minus the cost of your investment, and divide that number by the cost of your investment. The resulting number will give you your SEO ROI.
Example…
- Your SEO campaign generated £100,000 in sales over 6 months
- Your costs were £20,000
Here’s the calculation:
£100,000 – £20,000 = £80,000
£80,000 divided by £20,000 = 4
So for every £1 you spent on SEO in the 6 month period, you got £4 back. This means you’ve enjoyed a 400% return on investment.
Our SEO ROI calculator - going the extra mile
Our SEO ROI calculator takes things a step further and shows you the potential value of your SEO campaign. In other words, the value it could bring to your business based on a range of variables.
How it works…
- Take the estimated number of visitors you expect your website to receive per month.
- Enter the average ranking position of your site in Google organic search.
- Enter your website’s conversation rate – the % of visitors who take a desired action on your website, e.g. filling in an enquiry form or making a call) and then who turn into a lead. This is usually between 5-10%.
- Enter your sales conversion rate – the number of leads that actually turn into customers, clients or patients, for example.
- Enter your client lifetime value – the average revenue you expect to earn from a customer over the entire duration of your business relationship.
This will give you your estimated monthly revenue from SEO.
You can also change the numbers to see how your return would vary if things were different, for example, if your web traffic increased, your average ranking position was better or your conversions were higher.
This is useful, as it shows you what you need to focus your efforts on to make improvements, and how much value those improvements could potentially bring you.
