The Mechanism Of Return Of Investment of SEO


Our crucial job as search marketers will not be executed unless we can show our higher-ups that it is worth the investment.

We’re going to talk to you today about the return on investment (ROI) of SEO, which is a vital issue for website and business owners to grasp, but perhaps even more so for in-house and agency marketers that work on those websites. The reason for this, as you are surely well aware if you are one of those in-house or agency marketers with managers or customers to answer to, is that we as search marketers cannot have our vital and lucrative job done unless we can demonstrate that it is profitable.


People in roles such as the CMO, the head of the marketing department, or the owner of a small firm have a lot on their minds all of the time, and they frequently have to make difficult decisions about how to spend limited budgets and other resources. So, if we’re speaking to you as the person in charge of making those difficult decisions, we’ll explain why SEO is worth the investment of time and money.

We’ll offer you the data and talking points you need to explain that return on investment if you’re the one who needs to persuade others.

Possible Returns:

So, we spoke about numbers, and you can see some arithmetic on this whiteboard, but don’t get too excited. We’re not mathematicians, but we realize that a marketing director or a small business owner with a limited budget must comprehend the actual potential profit before committing to an SEO approach. We still have to justify the SEO consultant Brisbane initiatives we want to work on, the experiments we want to perform, and the tools we want to employ in terms of their ability to create income, either directly or indirectly, even if we work for a company whose whole focus is SEO. You can accomplish the same thing with some easy arithmetic if you can find a very strong key performance indicator for whatever it is you’re proposing.

So, take a look at, which is now ranked third in this SERP for one of their most significant and profitable search terms: “super fine blue widgets.” So, we understand that the organic click-through rate for a website page in the third spot on a SERP for a financial search query like this is around 7% on average.

SERP Ranking:

Our KPIs in this case are organic SERP ranking and click-through rate. Yours could be a little different, but they are very common SEO problems. So, with that 7% click-through rate, this page is now producing 500 organic click-throughs every month on average, and once a client is on that product page, they have a 3 percent chance of converting or purchasing that widget. For e-commerce, this is on the upper end of the average. With that widget costing $50, we’re looking at an average monthly organic search income of $750 for that page right now.

So this is where we start with our math. We’re hoping you’re still here. Chelsea, the SEO manager, is trying to persuade her boss to subscribe to an all-in-one SEO tool that will allow her to conduct in-depth keyword research, competitive analysis, identify possible link targets, write some really good on-page content, perform technical audits, and possibly earn some new, high-quality links pointing to the actual site and this product description in particular.

Chelsea Conducts:

Her boss, understandably, wants to know how much this will cost the firm. Chelsea conducts her research and discovers a product that can accomplish all of this for $179 a month. So she goes to work when her boss checks off on it, and she’s able to move this page from third to second place in the SERPs for the keyword “extremely fine blue widgets.”

Now we know that for a transactional search query like this, the page in the second position in the SERP receives an organic click-through rate of roughly 11%. As an outcome, this page now obtains 785 monthly organic click-throughs. For the sake of simplicity, we’ll leave the conversion rate at 3% after the customer is on the page.


But, of course, we know that Chelsea’s excellent work on the product description and user experience on the website may also help to increase the conversion rate, which is fantastic. But, to make things simple, we’ll keep the conversion rate the same. This widget is still $50 to purchase. As a result, this page currently earns $1,200 a month from organic search. This represents a $450 monthly gain from when this page was ranked third. After deducting the cost of the instrument Chelsea is using, we arrive at a monthly profit of $270, which equates to nearly $3,000 in earnings each year.

We can re-run the calculations and suppose Chelsea is able to push this page to the top of the SERP for this specific SERP, earning it a 22 percent average click-through rate. If she succeeds, that significantly higher increase in organic click-through, along with the same conversion rate and widget price, will net us an additional $1,600 each month in earnings. Again, if we exclude the expense of that instrument, we’re looking at $17,000 per year.


So $179 per month for a tool seems quite good now, doesn’t it? We understand that we just threw a lot of arithmetic at you. But suppose if sells hundreds of things and she can enhance the search ranking of even a tiny proportion of them. Even if you’ve skimmed over the details, you can grasp the gist of it here. In actuality, an e-commerce company’s average return on investment in SEO is roughly $2.75 for every dollar spent.

Your mileage will undoubtedly vary depending on your business, the website metrics you have to start within reality, and the competitive environment. If you’re working on a non-e-commerce website, calculating the financial worth of your work might be a little more difficult. If you’re building a lead generation site, you’ll need to calculate a rough financial value for each lead you produce.

Source: The SEO Expert

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