It’s important to measure the results of your online marketing across every channel, be it paid or organic. If you’re investing money into SEO, you may be left wondering how you can measure ROI`.
Investment
With Google Ads, for example, you have a physical cost. You Ad spend is approved, reviewed, increased and decreased based on the performance of the campaign. This cost is easy to quantify as you can easily see how many clicks you will get if you decrease or increase your spending whereas SEO results are earned. The only cost you can associate with SEO is usually the cost of services if you’re using an eCommerce SEO agency.
Return on Investment
Just because there aren’t any specific parameters for tracking our return on investment for SEO like we do with paid search channels, doesn’t mean we can’t assign a value and calculate an ROI. For eCommerce brands who measure online success via online purchases, you can calculate ROI on SEO by subtracting the cost of the services provided by your SEO agency from the revenue generated by Organic Search shown in Google Analytics then dividing the result by the cost and multiplying by 100 to give you a percentage.
The equation to use is: (Cost of Agency– Organic Revenue) / Cost of Agency x100.
Metrics such as traffic share and positions in Google are earned so both of these metrics, even though they are important aren’t the final indicator of monetary success we should use to calculate ROI. As your positions and traffic share increase you should start to see an increase in ROI. This is why tracking ROI for SEO is difficult as it might take several months before an ROI is seen and you may need to track other metrics until you see ROI increasing.
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