Steps For Measuring ROI For An Organic SEO Campaign

Measuring organic ROI for an SEO campaign is similar to measuring media budget impact. Key measurements will focus on the number of leads generated, the conversion rate percentage of site visitors, and performance metrics for each marketing channel. A business’s organic or natural website rankings directly affect company income.

The basic formula for organic ROI is pretty simple:
Revenue Generated by Ranking Position + Value of New Customers = ROI for Organic Rankings.

What is SEO ROI?

ROI is a measure of return on investment. In organic search marketing, companies should establish costs and expenses related to the campaign and then determine the corresponding values for keyword rankings and new customer acquisitions. Success should be measured by the amount spent to acquire a new client or make a sale.

It’s important to note that the formula above only provides a fundamental understanding of organic ROI. Other metrics will need to be accounted for to create a complete picture of an organic SEO campaign, including cost per acquisition and customer lifetime value.

Many people find these measurements difficult or impossible to quantify. Brand awareness is more complicated to measure than website traffic or a measurement of engagement on a website. Still, there are often clues in web analytics reports and data that can acquire more accurate and detailed information. Suppose a business doesn’t have an analytics package already. In that case, use Google’s Search Console, Google Analytics data, and Excel formulas to understand the numbers behind organic ROI.

Why measure the ROI of an SEO campaign?

Measuring organic ROI for an SEO campaign will help make a case for the continued investment into digital marketing and provide a directional indicator of where marketing efforts are most successful. For proper measurement and analysis, start by clearly outlining business objectives for the campaign and determine the metrics that will validate campaign success. While some businesses rate marketing ads by the number of clicks or social shares, other companies may look at acquiring new clients.

Not all keywords are created equal, so when looking at the revenue generated by increased rankings, likely, some positions may not have as significant an impact on sales or new customer acquisitions as others. Some words may generate substantial traffic but not result in conversions, while other terms may have little traffic but a very high conversion rate.

Measuring growth with this information and increased ranking for keywords by ROI will allow a team or SEO agency to more systematically select which terms to focus on and where to spend on future organic and pay-per-click budgets.

How to measure the ROI of an SEO campaign?

To measure SEO ROI, focus on three analysis points:

1.  Establish the value of keyword rankings, either in increased sales or new customers acquired. In doing this, include all of the costs involved with the project, especially a pay-per-click budget, time, and resources expended on content development
2.  Identify new customers and determine the average revenue per customer acquired from organic search engine rankings
3. Compare these numbers to identify the best return-per-investment metrics for the campaign, including ranking position, click-through rate, PPC budget, and the number of keywords ranked

Once the numbers are crunched, compare the data to determine which ranking positions or keywords perform best. The goal is to rank high for terms that create value, either in the number of new customers acquired or revenue generated.

It’s also important to look at ROI beyond rankings only, especially when considering significant investments like PPC campaigns. If campaign spending is heavy on pay-per-click, it may not be enough to identify the rankings that have the most significant positive impact.

In using these numbers as guidelines for an overall campaign strategy, a company should consider metrics such as click-through rates and cost per acquisition to help understand which keywords and ranking positions are providing the best return on investment overall.

What if a Company Can’t Measure SEO ROI?

Many companies cannot get direct feedback on search rankings, making it hard to measure SEO ROI directly. With some effort, a business should make educated guesses based on data available from Google analytics. Even basic analytics information can help make strategic decisions regarding content development, pay-per-click budget, and other components of an SEO campaign.

Google Analytics Reports for measuring SEO ROI

Google Analytics offers several reports to help businesses understand how organic search engine rankings perform.

1.  Landing Page report. Landing pages focus on SEO efforts for particular keywords; by filtering the landing page report by keywords, data will which terms are driving traffic to specific landing pages.
2. Goal Conversion report for a company’s eCommerce site or the Goals page within the Analytics account if a company doesn’t have an eCommerce presence returns critical data. Use this report to track conversions per keyword and compare this information with the analytics data for overall traffic driven by organic rankings.
3. Google Analytics’ behavior flow reports will provide valuable insight into organic search rankings. By looking at the path users took through a website or between pages, it is easy to identify the keywords driving traffic to specific site pages.
4. Search Keyword reports within Google Analytics allow a company to determine which terms drive traffic to a website with the reports in a format broken out by webpage or group of pages.

FAQs for Measuring ROI for an SEO Campaign

Can I measure organic rankings in Google Analytics?

Yes. The traffic acquired through Google search queries can be filtered and organized based on users’ search keywords or phrases. Identifying the keywords that bring the highest quality traffic is essential in deciding how much money should be spent on PPC or other components of the content development strategy.

What are the benefits associated with SEO?

SEO is a beneficial way to facilitate targeted traffic to a site. By optimizing a website, a business can remain visible compared to a competitor’s high-quality content. In addition, Google rewards sites that have been optimized for search engine rankings through more frequent indexing and high placement on SERP.

What are the drawbacks associated with SEO?

Organic search engine rankings may not be achievable for all companies. It’s essential to analyze an industry and research competitors to see which terms they rank for. If a website does not have competitive content, paid advertising or off-site marketing such as article marketing or social media marketing to help broaden a campaign.

What is the return on investment of SEO?

It is impossible to directly correlate ROI for organic search engine rankings with most marketing strategies. However, utilizing analytics data can explain which keywords drive traffic that converts into new business. This information may be used to make strategic decisions regarding how much money to put behind PPC campaigns or other aspects of a content marketing strategy.

Is it possible to track expenses for an SEO campaign?

Yes. It is possible to track traffic driven by organic search engine rankings through analytics data. By identifying the keywords driving visitors who complete specific actions on a website and/or recording PPC costs and conversions, a business can acquire data with cost-per new customer acquisition.

How will SEO affect my site rankings?

Search engines provide quality results to their users when they need information. Increasing incoming links, adding additional content, and implementing a targeted SEO strategy increase search rankings. There is a direct correlation between a solid SEO strategy and an increased search presence.

What keywords should I optimize for?

It is essential to identify which keywords should be targeted and incorporate them appropriately into website content. Too general keywords may result in a lower page rank from a much higher level of competition while achieving a higher page rank through more targeted; focused terms can rank high and create a better visitor conversion rate.

How do I get my site to rank higher?

The best way to get a website ranked higher is through continued, high-quality content development and link-building strategies. Although Google looks at over 180 variables on a website to determine ranking, content and incoming links are the most important ranking factor.