Are your SEO efforts giving you their intended results? If yes, how much revenue are they generating compared to their cost? The answer to this is your SEO ROI (return on investment).
It’s important that you know how to calculate SEO ROI, because it’s a crucial indicator that ties your SEO initiatives with your business goals. You can say that it answers the question of whether or not SEO is worth it (although we all know it is). Let’s dig a little deeper on why calculating it is essential for your business.
What Exactly is SEO ROI?
SEO ROI measures the profitability of your SEO campaigns. As mentioned earlier, this key performance indicator (KPI) compares the revenue generated from SEO efforts to the cost incurred. A positive ROI means your efforts are paying off, while a negative ROI suggests the need for strategy adjustments.
Justifying SEO Investments
If your business allocates significant budgets on SEO (as it should), calculating ROI helps justify these investments. You need it to secure future budgets and resources for SEO-related activities. Think of it as an opportunity to show stakeholders why SEO is such a crucial investment.
Identifying Effective Strategies
Which among your SEO tactics are most effective? To answer this, analyse the ROI of all your SEO activities. The insights you’ll get will allow you to focus on strategies that deliver the highest returns and perhaps work on anything that needs improvement. If a certain strategy isn’t working, then it might be time to discard it.
Enhancing Decision-Making
By calculating SEO ROI accurately, you’ll get data-driven insights into the performance of your SEO campaigns. Hence, you’re able to make informed decisions. Is your current link building strategy working well? Substantiate your claims with your high SEO ROI and show stakeholders that it’s worth continuing.
Long-Term Planning
SEO is long-term, and by calculating its ROI, you’ll better understand its long-term benefits. You can plan more efficiently and therefore set more realistic goals and expectations, which is crucial to achieving overall success.
Accountability and Transparency
SEO is a team effort, and visibility into it is essential for stakeholders—even those outside of the team. Measuring SEO ROI ensures everyone is accountable for their part in the project. Furthermore, it supports transparency, making expectations clear for all involved.
Improving Budget Allocation
With a clear understanding of ROI, you can allocate budget more effectively. If your content marketing efforts are delivering the most value, then it makes sense to further its budget. Conversely, you might need to reduce or eliminate spending on low-performing activities.
Calculating SEO ROI Gives Your Business a Competitive Advantage
From identifying effective strategies to improving budget allocation, calculating SEO ROI helps your business gain a competitive edge. If you haven’t yet, it’s time to invest time and effort in understanding it to attract relevant traffic and boost your SEO rankings. Partnering with a reliable SEO agency like G Squared is a giant leap towards achieving these goals.
