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Calculating ROI of Search Engine Optimisation Campaigns

Calculating ROI of Search Engine Optimisation Campaigns

 Search Engine Optimisation

Clearly if you are considering promoting your business through the process of search engine optimization it is helpful if you can understand what sort of return your can expect to reap from your investment. Calculating the potential return can assist you in deciding how much you should in SEO. So how exactly do we quantify what is a good ROI for SEO services? There are two main aspects to consider: a) measuring how much your site traffic has increased, and b) what percentage of those new visitors convert to sales.

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Basically you need to consider the current monthly traffic of your website and which revenue streams are the most productive for you. Once you have this information you will need to make an estimation of how much this number will increase – there are plenty of tools available to help with this procedure.

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The third step is then deciding on how much customers spend on average. Combine this knowledge with conversion rates and you will start to see the potential of SEO. Of course there are other variables at play, but that is the general drift of it.
As an example lets say your firm averages $100/ sale and your conversion rate is 1%. If your website gets 10,000 visitors / month you would grossing $10,000/ month from that particular revenue channel (100 customers x $100).

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Now if search engine optimization increases your traffic by a mere 10% and improves your conversion rate to 2% overall, then you are looking at an additional 120 customers / month (11,000 x 2% = 220 – the original 100 customers =120). Your new 120 monthly customers thereby translates to additonal $12,000 / month or $144,000 / year. So the question is, in this fictional case, what would be a reasonable amount to invest?

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Obviously those decsions are for you and your company. In all honesty a site that is not search engine optimized will see far more dramatic results than the fictitious case study above. Studies have shown that SEO strategies can return as much as 15 times on your investment compared to PPC campaigns. Google SEO offers extremely competitive SEO pricing for the quality of services provided