Calculating the ROI of an SEO Campaign
In the next 5 minutes you’re going to learn:
- Forecasting the ROI of your organic content distribution (SEO) project
- Forecasting costs to deliver the desired outcome
- Forecasting best, middle, and worst-case outcomes
The formula to understanding different SEO ROI outcomes is:
Total Monthly Searches * Click Through Rate * Conversion Rate * Average Order Value = SEO ROI.
We’ve even pre-built a calculator you can use or modify.
What’s the ROI?
The ROI on your campaign is equal to TMS+ CTR + CTA + AOV * LTV.
Total Monthly Searches
TMS is the sum of the monthly search volume across all of the keywords you found that can drive qualified traffic.
CTR is the percentage of searches that result in a user clicking through to your website.
Your CTR is a reflection of where your website ranks for the keywords you’re targeting.
Position #1 on the first page receives about 30% of clicks.
Position #5 receives about 9.5% of clicks.
Conversion is the percentage of visitors that convert into a customer.
Average Order Value
AOV is the average transaction value.
What’s the LTV of your customer?