Search Engine Optimization (SEO) is a marketing strategy that brings in more customers from search results. This strategy can provide organic traffic for free.
In this article, we will explain why using SEO services from a digital marketing agency is the most profitable choice for your long-term business investment.
What is SEO ROI?
Return on Investment (ROI) is a metric used to measure how much profit you get compared to the amount of investment you make. You can use this metric to measure the profit you get from your SEO strategy.
In contrast to PPC (pay-per-click) advertising, the results can be seen immediately from how much it costs you to spend. SEO strategies need a minimum of 3 to 6 months to show their effectiveness.
KPIs in SEO strategy
Before starting an SEO campaign, it is highly recommended to determine the SEO goals you want to achieve. After you have determined the goals you want to achieve, you can evaluate the performance of your website with some of the KPIs below:
- Organic search traffic
- Keyword rankings
- Bounce Rate
- Conversion rates
- Page load times
- Established backlinks
Make sure you use Google Analytics to monitor website performance and measure the above metrics more accurately.
How to Calculate SEO ROI
To calculate ROI, you need to determine what costs are related to the SEO strategy efforts that you are running.
If you use an in-house SEO team, it's worth considering the contribution of time and effort from an in-house SEO team. In-house SEO roles usually focus on SEO tasks only, for that you can calculate costs on an hourly or daily basis. Don't forget to also add the tools and software that your team uses.
If you use SEO services from a digital marketing agency, you only need to calculate the SEO service rates charged. Usually they will provide a price quote for one year.
The formula for calculating SEO ROI
The SEO ROI formula is the same as how to calculate investment ROI in general.
ROI=((Revenue-Cost)/Cost)*100
To use this formula in calculating SEO ROI, replace Revenue with organic traffic and Cost with the total cost that you use while carrying out the SEO strategy. Next, the result is just multiplied by 100 to find out the percentage of ROI.
Evaluation of the Results of SEO ROI Calculations
Once you know what percentage of ROI your SEO campaign generates, you can evaluate whether the results meet your expectations. A positive ROI illustrates that your SEO strategy is bringing profitable results for your business. If the SEO ROI is negative, you need to change and improve your strategy.
Keep in mind that calculating SEO ROI is more complex and requires an in-depth analysis of various factors. It is also important to consider outcomes that are not related to conversions when assessing the results of an SEO strategy, such as brand visibility, increased organic traffic, and long-term business growth.
Conclusion
SEO is an investment that you can use for your business's growth. By measuring your SEO ROI on a time-based basis, you can adapt a strategy that will more successfully resonate with your target audience.
Tomato Digital Indonesia provides professional SEO services that are able to optimize the quality of your website and are proven to be able to increase organic traffic to your website. Contact us for a free consultation session today.
