Sunday, 02 October, 2022

How To Measure Return On Investment On Your SEO Efforts

How To Measure Return On Investment On Your SEO Efforts (2)

How To Measure Return On Investment On Your SEO Efforts

If you want to succeed in the digital world, your business needs to be present on the Internet. And besides that, it needs to be visible to potential customers. That’s why investing in search engine optimization is essential; platforms like Google are pretty much synonymous with online searches these days.

On the other hand, SEO efforts are always a long-term investment, and calculating an ROI is not always simple. That’s why we’ll teach you how to measure return on investment on your SEO efforts right here. Especially if you’re an SEO company that wants to advertise its worth to potential clients, showcasing the return on investment from your previous projects is always a good idea!

How Much Is SEO Worth?

As everyone in the business knows, SEO is somewhat esoteric — estimating the precise monetary value of an SEO campaign is rarely clear-cut. That’s because sales don’t come directly from SEO. If you perform search engine optimization well, your website will rank better. In turn, that will also mean that you get more traffic — and more potential customers.

So, how do you, as a client, measure return on investment on your SEO efforts? Or, how do you convince someone to hire your company for its search engine optimization services if you can’t give them an estimate of how much you’ll improve their sales? That’s why an ROI calculation is needed. Before you can do that, however, you will require some data from potential or existing clients.

How To Measure Return On Investment On Your SEO Efforts

Conversion Tracking

If you want to calculate how much your SEO work is worth, you need to track conversions on client websites. However, keep in mind that this isn’t performed in the same way when it comes to product and service clients. If you’re essentially doing activities that will improve your ranking as an e-commerce store, your set for ROI calculations will be different from a service-based business that depends on leads.

Essentially, it’s simpler if you’re trying to rank an e-commerce product store. They have precise data that shows the amount of money made from sales, and it’s easier to measure return on investment on your SEO efforts. On the other hand, a lead-based company has to assign value to a variety of conversions.


If you’re running an SEO campaign for an e-commerce store, you need to start tracking the site’s commercial activity via Google. And even if you don’t want to measure ROI on SEO, this data is required to surmise how successful the website is in general. Google’s tracking will give you all sorts of valuable insights, such as the number of transactions on the website, the average order’s value, overall revenue, conversion rate, etc.

All of this allows you to see precisely how much value your website generates in terms of dollars and where it comes from. From all of that, concluding the ROI on your SEO campaign is pretty simple.

Lead-based Companies

When it comes to businesses that provide services and don’t have actual transactions on their websites, measuring conversions isn’t as easy. Mainly because you can’t pinpoint dollar values from website data. However, this still doesn’t mean that there aren’t quantifiable actions that people make on your website; these can be used for ROI calculations as well. All you need to do is to figure out what leads do when they are converted into customers, and how much these actions are worth.

You need to assign precise dollar values for actions like form filling; if someone provides you with their personal information in exchange for a newsletter or minor service, that could be worth $50. Bear in mind that this is purely an arbitrary number to illustrate our point. The actual worth of actions related to your business will depend on your revenue and the value of your services.

How To Measure Return On Investment On Your SEO Efforts (3)

Google Analytics has a section entitled “Goals” where you can set specific goals for your website. There’s also a value marker that is not on by default, but you can use it and enter your own estimates on monetary values for lead actions.

Performing Analyses

Now that we’ve shown you how you can measure conversions for both product and service websites, you should track the desired data sets for at least two months before you start trying to measure return on investment on your SEO efforts.

Then, examining the results will reveal just how much your SEO work is worth. A report on conversions from Google Analytics will tell you everything you need to know about the number of conversions that come from social media, email marketing, organic results, PPC, etc.

This report also contains the value of said conversions — the overall value is basically the entire revenue you’ve received from each of your search avenues. If you view this revenue count in the context of your SEO budget for the given period, you’ll be able to see how much of your profit actually depends on SEO.

While this gives you a nice landscape view of the ROI on your entire digital marketing efforts, singling out your SEO-based revenue is pretty easy. Organic traffic is the direct result of consumers Googling the keywords you’ve optimized for; this is entirely SEO-generated revenue.

So, imagine that your revenue from these searches is $50,000 in a single month. If you’ve paid $10,000 to an SEO company for their work in the same period, your return on investment is $40,000.

If you want to see how much your PPC campaign or social media marketing has paid off, you can basically do the same calculation. Once you set up the right conversion tracking on your website, knowing how much money comes from what type of marketing is straightforward.