How do you measure ROI from your SEO investments with an agency?

Measuring return on investment (ROI) from SEO can be challenging because it involves tracking multiple metrics and factors. However, there are several ways to measure the ROI of your SEO efforts, and here are some of the most important metrics to track:

  1. Organic Traffic: Organic traffic is the traffic that comes to your website from search engines like Google, Bing, and Yahoo. By tracking your organic traffic, you can see how your SEO efforts are impacting your website’s visibility in search engine results pages. You can use tools like Google Analytics or SEMrush to monitor your website’s traffic sources, including organic traffic.
  2. Search Engine Rankings: Search engine ranking refers to where your website appears in search engine results pages for specific keywords and phrases. The higher your website ranks in search engine results pages, the more visible your website will be to potential customers. You can use tools like SEMrush or Ahrefs to track your website’s ranking for specific keywords and phrases.
  3. Conversion Rates: Conversion rate is the percentage of visitors to your website who take a specific action, such as making a purchase or filling out a contact form. Tracking conversion rates is essential when measuring the ROI of your SEO efforts because it allows you to see how many of your website visitors are taking the desired action. You can use tools like Google Analytics or SEMrush to track your website’s conversion rates.
  4. Revenue: Ultimately, the most critical metric to track when measuring ROI from SEO is revenue. By tracking your website’s revenue, you can see how your SEO efforts are impacting your business’s bottom line. You can use tools like Google Analytics or your e-commerce platform’s reporting tools to track revenue generated from SEO traffic.
  5. Cost of SEO: Finally, you need to track the cost of your SEO efforts to calculate your ROI accurately. You can calculate the cost of SEO by adding up the cost of any SEO-related services, such as content creation, link building, or technical SEO, and dividing that total by the period over which you are measuring your ROI.

To calculate your ROI from SEO, you can use the following formula:

ROI = (Revenue – Cost of SEO) / Cost of SEO

For example, if your website generates $50,000 in revenue from SEO traffic and your cost of SEO for the same period is $10,000, your ROI would be:

ROI = ($50,000 – $10,000) / $10,000 = 4

In this example, your ROI is 4, which means that for every dollar you spend on SEO, you generate $4 in revenue.

Measuring ROI from SEO requires ongoing tracking and analysis of various metrics, including organic traffic, search engine rankings, conversion rates, and revenue. By tracking these metrics and calculating your ROI, you can determine the effectiveness of your SEO campaigns and make data-driven decisions to improve your results.