Work Out The ROI Of Your SEO Spend

Work Out The ROI Of Your SEO Spend

By Sadie on December 8, 2009


Work Out The ROI Of Your SEO Spend

When investing in a new service, whether it is web design or SEO it is important you know what you are getting in terms of Return On Investment (ROI). A lot of SEO companies place a value on the keywords they have chosen getting to high positions in Google or Yahoo, but does this value mean anything to your business?


How To Work Out Your SEO ROI

Your ROI will be determined from day one when you choose your keywords, if you go for a generic, competitive keyword such as ‘business’ then you will need to invest a lot to get high positions from this. You will also have a high bounce rate and few conversions as people searching for ‘business’ could be looking for anything from ‘business advice’, ‘business accounts’, ‘business plans’ to ‘business travel’, therefore the chance of getting a return on investment will take a long time and probably not cover the initial spend and maintenance.

If you look at your business model and work out what your USP (unique selling point) is, your key services and the competitiveness of those in terms of websites strength then you can work out if they are the right keywords. If your services are competitive then go for more longtail versions that are specific to your business, you could add regional keywords and pick up local conversions, you could be more specific to areas  of the service, for example a builder may choose to use ‘loft conversions Staffordshire’ or ‘conservatories Essex’ this may convert well based on their testimonials and pictures of previous work, be specific to their area and be easier to rank for giving them a quicker and better ROI.

At Falkon Digital, all of our long-term campaigns include ROI reports on a regular basis, these are handwritten reports that show the improvements in SERPs (Search Engine Results Pages), traffic that has come through (overall and through SEO and PPC if applicable) and the ROI.

On an E-Commerce site it is easy to work out the ROI as you have the amount made through on-site sales (minus overheads, shipping and tax to work out the profit) take away the amount spent to get the Money made from the SEO. You can also work out the percentage which is often anywhere up to 4500% on some campaigns.

On a brochure site or basic website, it is much harder to work out an ROI as there is no physical money being made off the site, for this we attribute a cost to a lead from a completed contact form being sent. Depending on the business this could be high or low, for example, to contact someone about a painting would be worth less than to contact someone about a rental contract or buying a house, therefore, it is important to put a fair value on this. We can then work out the ROI in a similar way to above but this is on average lower than on a shop site.

If your SEO company is not giving you a good ROI you are always within your rights to change, make sure you question your keywords and find out all of the options. For any more advice please feel free to contact us.