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How do you measure the ROI of SEO?
Hi,
For a marketing team, how should we measure the ROI of SEO? By my understanding, the most direct way is the organic traffic through SEO. For example, the team costs 5K$ per month on content creation and achieves 5000 clicks per month. If CPC is 2$s, then ROI is 5000\*2/5000 is equals 2. What’s your idea?
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1 Reply
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If you aren’t tracking the leads converted, multiplied by the LTV of the customers over the cost, then I don’t know what to tell you.
CPC is the most idiotic way to capture ROI of SEO. How does traffic without any conversion even matter. If those 5000 clicks end up without a sale, what’s the point of SEO?
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Who on earth would give a shit about clicks? Clicks are easy. CPC is probably the most idiotic way to measure your value.
Show me the money or GTFO.
If the team costs $5k a month, then you need to prove you are MAKING MORE MONEY THAN THAT from organic, and that INCREASES thanks to your stunning work.
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Well ROI is will be calculated on the value of the traffic(on currency whatever your currency let’s say its $) Multiplied by CPC and divided by the cost you spend on it.
It is for the calculation purpose but if you are a startup and spending 5k$ initially on a project your ROI will not be very good. It will take time for good results. -
the way you’re writing that out is completely wrong from a marketing standpoint. A click for red horses does not equal a click for buy laptop now
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revenue generated from organic search. nothing else matters.
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How much money was made by users who came from organic traffic divided by the cost $5000.
That’s how you would do it
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For a business ROI can be measured easily,
Imcoming Traffic -> Give you Conversions -> these conversions can be anything which is valuable for the website to generate revenue/ any valuable action.LTV is applicable if the user life cycle on the website is long. Ex: repurchase of products , affiliate links , etc.
ROI = Total Revenue / Cost of SEO ( content generation cost + tech cost)
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