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The Best Way Today to Measure the ROI of Your SEO Campaign

by Jay | Updated on August 29th, 2019

It is the nature of all marketers; they are always obsessed with the results and always prepared to do anything to get a desirable outcome. Though not all the time, the results turn out to be what is expected, most marketers work tirelessly to get admirable results.

The ability of a marketer to measure the ROI of an SEO campaign is very crucial, and something everything marketer needs to consider very seriously. Knowing whether a campaign has been successful or not helps a lot in not only running subsequent campaigns but also making sure every investment is worth the time and money invested. In other words, it is worth to make sure nothing is going to waste in any SEO campaign.


The Best Way Today to Measure the ROI of Your SEO Campaign

Today there is a variety of KPIs that can help you weigh whether an investment in an SEO campaign is worth or not. Click-through rates, search engine ranking, and web traffic are among the top KPIs, you will find helpful, but there is one KPIs that is the king, that is ROI.

measure seo roi

Why is it important?

ROI tells you whether investing in SEO campaigns is worth or not. When the results are positive, this is a clear indicator you are on the right track, and ready to roll out the next campaign. On the other hand, if the results are negative; this is a signal, you need to go back and check what could be hurting your efforts. In a nutshell, ROI gives you a real picture of your investment.

Fortunately, today, there are several ways to measure the ROI of an SEO campaign. It is possible you know some of the recommended ways to measure the ROI of an SEO campaign. With that in mind, let’s have a look at the best ways to do this. However, before you measure anything, you may want to make sure you are ready for the exercise by doing the following.

Track your conversions

What you actually need to do to get started on the right foot.

  • Set up conversion tracking

This is a very crucial step that helps you track the conversion that occurs on your site at any given time. You can track conversion by setting a conversion tracking in Google analytics. Note that the type of conversation tracking you use primarily depends on the kind of website you own, and whether or not you sell directly through E-commerce.

For example, when operating an E-commerce, tracking conversion through Google analytics gives you direct access to sales figures generated through online transactions, thus making it possible for you to calculate your total online revenue.

  • Conversion values

Choosing conversion values should not bother you if you have already made some sales. With that, when selecting which values to use in your conversion, consider values similar to past sales. For example, if your last three reviews resulted in a $5000 sale, then making $ 5,000, your end conversion rate is ideal.

This is something you can set up on Google Analytics by following the right steps. New to Google Analytics, click here now for reliable tutorials about using this application to track conversions.

  • Filter your SEO conversions

To calculate the ROI, this is one step you cannot skips. Using Google Analytics, it is possible to filter what you don’t need for examples, direct email, display, paid search, etc. and identify the conversion stats that were generated solely through organic search. Narrowing down to organic search channels, you will be able to analyze your SEO performance and eventually gain valuable insight about your digital marketing strategy and a crucial part of your SEO.

  • Calculate your ROI

When calculating your ROI, there are many approaches. For now, this post takes you through Investopedia. Feel free to try other methods you know, or you will come across and compare results.

 

(Current Value of Investment – Cost of Investment) / Cost of Investment = ROI

 

For this case, the current value of the investment would refer to the proceeds obtained from the sale of the investment of interest. In a nutshell, this is the total organic search sales value.

Now let’s break down this further using the above sample.

So, if organic sales equated to $45,500.00 in one month, and the business spent a total of $3,300 per month on SEO, the ROI for that month will be roughly 13%.

(45500-3300) / 3300 = 12.79

Alternative metrics

Assessing the performance of SEO is not an easy task. Fortunately, there are solutions to that. Below are a few metrics you will find helpful when accessing the performance of your SEO activity.

  • Search ranking

Search ranking determines which page you appear when searched. You SEO performance can tell you a lot by only having a look at which page of the search engine you appear. First, second, or tenth page? Let’s say you’re a consultancy law firm in New York City, and aims to boost your rank for target keywords such as ‘Law Firm New York City,’ ‘Best Legal Firms in NYC’ or ‘Top Legal Advisors New York City.’

Let’s assume before the campaign you rank on the tenth page and now the second page, that is a clear indicator your SEO campaign is paying off. It is good to note to rank on the first pages does not happen overnight. It takes some time, and you have to be patient to see real results. So, don’t give up two days after launching your campaign. You can use software such as SEMrush and Ahrefs to monitor your ranking.

Commonly known as backlinks, they play a crucial role in ranking fast. Simply this is how backlinks pay you off. You are awarded by Google with higher rankings when you get inbound links from credible and authoritative sites. A higher ranking means more visibility and is a sign your SEO campaign is working.

  • Organic traffic

Receiving organic high organic traffic over a given period, let’s say a month is a good indicator your SEO strategy is really working. An increase in the number of new users visiting your site is also a good sign you have made significant strides in your campaign.

Conclusion

Measuring the ROI of your SEO is very crucial, and something you may want to do often. Knowing how to measures KPIs place you in a position to see whether you are on the right track or you need to change. The most crucial thing is to make sure your investment is paying off. Need more information?

Jay

I've worked for WooRank, SEOptimer, and working on a cool SEO audit tool called SiteGuru.co. Now I have build Linkilo and SEO RANK SERP WordPress theme. I've been in the SEO industry for more than 5 years, learning from the ground up. I've worked on many startups, but also have my own affiliate sites.

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