It’s important to measure how much bang you really are getting for your buck across every channel, paid or not. If you’re investing money into SEO, you may be left wondering how you can truly measure the ROI of this channel.

Investment

With Facebook for example, you have a physical cost. Media spend is approved, reviewed, increased and decreased based on performance. This cost can be seen as your digital rent, you’re paying for exposure and sales through a paid channel whereas SEO is earned. The only cost associated with this is usually the cost of services if you’re using an SEO agency. 

Return on Investment

Just because we don’t have any specific parameters for tracking our return on investment for SEO like we do with paid channels, doesn’t mean we can’t assign a value to our return and calculate an ROI.  For e-commerce brands who measure success via online purchases, we calculate ROI on SEO by subtracting the cost of services from the revenue generated by Organic Search then dividing the result by the cost and multiplying by 100 to get a percentage.

Or simply put:

(Cost of Investment – Organic Revenue) / Cost of Investment x100.

Statistics such as traffic share and rankings from organic search are earned so both of these metrics (although important!) aren’t the final indicator of monetary success we should use to calculate ROI.

Get in touch with the team today to see how we can support you in giving your SEO a boost!