Tuesday Tidbit: Can You Calculate the Return to Expect from SEO?

Clients often ask to see exactly how their SEO campaign will pay off. What fiscal results should they expect? This is a totally fair question seeing as they're putting in valuable time and money, but one that is often hard to answer. For this week's Tidbit, let's take a look at how the experts measure ROI from SEO.

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It's no secret that SEO has changed dramatically over the years. You can no longer view keywords within Google Analytics (100% not provided), each individual user sees different search results (personalized search) and most markets are saturated with content, changing the modern keyword landscape dramatically. Check out a few of the experts thoughts on how to measure possible return from your SEO efforts.

1) Phil Frost from Main Street ROI mapped out this formula: 

If:

x = volume of keywords searched

y = percent of searchers who became visitors

z = percent of visitors who became customers

v = average customer value

L = local SEO revenue

Then:

(x) x (y) x (z) x (v) = L

He points to methods of finding these numbers in the article "How to Calculate the Potential Return on Investment from Local SEO." He emphasizes that this is not going to give you concrete numbers, since so many of the variables depend on unpredictable circumstances. However, he does use this general formula to understand how big your SEO opportunity might be. 

2) Jayson DeMers from Forbes and Sam McRoberts from Point It Marketing compare SEO to the Stock Market. Your investment is a risk and it's unpredictable. 

You choose your stocks (keywords) based on the knowledge you have at hand, and then you wait. You’ll likely experience periods of growth and decline (like ranking fluctuations), but one thing is certain: the stock market and SEO are both long-term endeavors. There’s no quick path to riches in either case.

But don't worry! This doesn't mean that if you're bad with stocks, you're going to fail. It just goes to show you have to study what's going on in the market / keyword world, be patient, and know when to try out a different investment / switch up your SEO strategy. 

3) Ryan Knoll of iCrossing points to a more holistic view of SEO. In a way, his article agrees with Frost as he shows that there are a few ways to calculate your ROI. But he also agrees with DeMers & McRoberts in that there's definitely not one formula for all things SEO. 

He takes this one step further and breaks down SEO into four categories: Search Rankings, Link Building, Content Marketing, and Technical. He also addresses how one of these pieces can't survive without the other. Some aspects of each can be calculated, but some simply can't.

Unfortunately there is no one tried and true formula for calculating your ROI on SEO, but at least these strategists can help you understand what type of investment (both with money and time) and the amount of studying it takes to hone in on high quality SEO. Landing on the first page of Google results can reap huge financial benefits for your business. 

For more help building your SEO campaign, contact the strategists at ArcStone. You can also download an ebook and dive deeper - find it at "What to Know About SEO for Your Next Redesign."