The ROI of SEO - How To Calculate ROI. Is SEO Worth It? What is the Value of SEO?

Today we're talking about one of the most important aspects of digital marketing - how to calculate the ROI of search engine optimization, or SEO. https://www.39celsius.com/demystifying-the-roi-of-seo-the-essential-guide/

SEO can be complex, but it's one of the most cost-effective ways to drive qualified traffic to your website with one of the highest returns out of any digital marketing that you implement. 

Check out our free guide to dominate your local market: https://www.39celsius.com/dominate-your-local-marketing-with-local-seo/

And in today's video, we'll break down exactly how to track and calculate your return on investment from SEO efforts, so you can answer the question, is SEO worth it? What is the value of SEO?

We also provide a case study example that demonstrates huge growth in organic traffic from SEO efforts over 12 months. But more traffic alone doesn't automatically mean more sales or leads for your business.

That's why measuring ROI is so critical. You want to know that the time and money you're putting into SEO is actually paying off.

⭐Book a free call with me: https://keap.app/booking/39celsiuswebmarketingconsulting/15-minute-initial-consultation

Read our SEO case studies: https://www.39celsius.com/seo-case-studies-real-results-and-strategies-for-boosting-website-traffic-and-rankings/

Don't forget to like and share the video if you find it helpful.  Got more questions on digital marketing?  Share them in the comments section below or reach out to me directly.  And if you want to generate more leads, sales, and profit for your business through digital marketing, reach out to me now. 

Contact us:  https://www.39celsius.com/ Visit our office at: 32605 Temecula Pkwy, Ste 211 Temecula, CA 92592 Phone: [phone]

Episode Transcript

(00:00):
- Hey everyone, welcomeback to the channel!
If you're consideringspending money on SEO
or you already are spending
on search engine optimization efforts,
you don't want to miss this video.
We're talking about
one of the most criticalaspects of digital marketing.
The ROI of search engineoptimization, or SEO.
This is one of the most common questions.

(00:21):
What is the return of SEO?
Or is SEO worth it?
And the only way to answer these questions
is by calculating the ROI.
So buckle up, friends,
because we're about to unravel
some incredible insights to help you
calculate the value of SEO.
But before we getfurther into the content,
let me briefly introduce myself.

(00:42):
I'm Toby Danylchuk
with 39 Celsius Web Marketing Consulting.
I have been actively involved in SEO
and digital marketing for over 20 years.
And I have been activelyrunning my agency since 2008.
Just a friendly reminder,
if you find this video helpful,
please give me a thumbs up on the video,
share it with someone who could benefit
and because I do this for a living,

(01:04):
if you need help with yourdigital marketing efforts
and want to grow leads andsales for your business,
reach out to my team and Inow at [e-mail]
and let's discuss your project.
Okay, so back to the content.
SEO can be complex,
but it's one of themost cost-effective ways
to drive qualifiedtraffic to your website.

(01:26):
And in today's video,
we'll explain exactly how to track
and maximize the return oninvestment from SEO efforts.
As you can see from this example,
a strong SEO strategy can lead
to massive growth in organic traffic
from search engines like Google.
And let's be honest,
Google owns 93% of all search traffic,
so Google is all that mattersfrom an SEO perspective.

(01:48):
But more traffic alonedoesn't automatically
mean more sales orleads for your business.
And that's why measuringROI is so essential.
You want to know that the time and money
that you're puttinginto SEO is paying off.
So, how do you measure andcalculate the ROI of SEO?
Here's the step-by-step process.
First, you must measure conversion actions

(02:11):
and assign a monetary value to each.
Here's an example list of values
to consider for your business.
First, Direct Revenue Conversions.
This is the average sales revenue
if the conversion is a direct sale.
An example of this isan e-commerce website.
Lead Generation.

(02:31):
For actions like form fills,
estimate the lead-to-customerconversion rate
and the average customer value.
For example, if one out ofevery 10 form conversions
results in a sale
and each sale is worth $100,
then each form submissionmight be worth $10.
Inferred Value Conversions.
For actions like clickingdriving directions

(02:52):
or viewing a key page,click-to-call phone calls,
you might assign valuebased on the estimated
likelihood of these actions
leading to a sale ordesired outcome later.
And then finally, consider Lifetime Value.
Understand the lifetimevalue of a customer,
not just the immediate sale.
A form fill leading toa small initial sale

(03:12):
might lead to a high-value,
loyal customer over time.
Or, If you have a recurring membership,
what is the averagevalue of that membership?
Each industry differs inwhat conversion actions
are tracked and the value thatis assigned to those actions.
The primary tool you should use
to calculate the ROI fromSEO is Google Analytics,

(03:33):
also referred to as GA4,
combined with Google Tag Manager.
GA4 allows you to see the actual
number of conversion actions.
But what conversionactions should I be using?
Here are example conversion actions
to consider for four industries.
Restaurants, Professional Services,
Beauty Salons, and e-commerce sites.

(03:54):
For a restaurant,
look at your online direct sales coming
from organic search traffic.
It's not uncommon thatsome restaurant websites
provide direct online ordering.
From within Google Analytics,
you can see how many sales come directly
from Google and other search engines
if you provide onlineordering on your website.
Next, consider trackingclick-to-call phone calls,

(04:17):
driving directions,requests off your website,
and button clicks onyour site's Open Table
or Reservations links,
perhaps gift cardpurchases, menu downloads,
and event inquiries.
Next, let's look at professionalservices such as lawyers,
consultants, accountants,or marketing services.

(04:38):
You should considercontact form submissions,
phone calls, appointment bookings,
downloads of white papers or case studies,
webinar registrations,
or newsletter sign-upsfor these industries.
Next, how about beauty salons?
Consider online appointment bookings,
service inquiries from form submissions,
gift card purchases,click-to-call phone calls,

(04:59):
online product sales,
or membership or loyalty programs.
Finally, let's consider e-commerce sites,
which are often the most straightforward
since you either sold something or didn't.
Here, you most likely will only
track direct online sales
coming from organic SEO traffic.
But whatever conversion actions you track,
you need to assign some value,

(05:22):
which I mentioned earlier in the video.
Next, once you have assigned value
to those conversionactions we talked about,
you can then tally up all your SEO costs.
Things like the SEO retainer fee
if you're paying an agency like us,
any SEO software, content creation costs,
SEO tools, and more.
Now, with these numbers in hand,
you can plug them intothis simple formula.

(05:44):
ROI equals Revenue from organic SEO
minus SEO Costs
divided by SEO Costs.
Or, for illustrative purposes,
let's say your sales were$7,000 from SEO traffic,
and SEO expenses were $2,000 per month.
Then the formula is Sales of $7,000
minus SEO expenses of $2,000
divided by SEO expenses of $2,000
which gives us an ROI of 250%.

(06:05):
This means that for every dollar spent,
there is a return of $2.50 in profit
above the initial investment.
That's excellent ROI!
Tracking this metric month-over-month
will show how your SEOROI changes over time.
Let's look at a real-world example
from an e-commerce website selling
direct-to-consumer health products.

(06:25):
In the first few months,
ROI was lower as the site worked
to build more organic presence.
But after seven months,
there was a clear upward trend in the ROI
as organic SEO trafficand rankings improved.
Fast forward one year
and this site saw a 462%increase in organic traffic,
leading to over 1,800%in ROI and over $18,000

(06:48):
in incremental revenue per month
just from organic traffic.
The key takeaway isthat SEO is a long play,
and the compounding returns
from consistent effort applied over time
make it well worth the investment.
Improving your organic presence
now pays dividends for years
to come in the form of highly
qualified visitors and newbusiness opportunities.

(07:08):
And, I can tell you from over 20 years
of SEO experience that the ROI
that comes from SEO
is the best out of anymarketing you ever do.
Whether it's digital
like Google Ads, Facebook Ads
or from Traditional Marketing
like TV, Radio, Print, or billboards.
So start tracking SEO ROI today.
Know what's working,

(07:29):
optimize your strategy,
and maximize your marketingbudget for sustainable growth.
Finally, I hope this helpedyou better understand
how to calculate ROI
from your search engineoptimization efforts.
But before you go,
don't forget to hit the like button
and subscribe to my channel
for more digital marketingtips and strategies.
But, if you have more questions

(07:50):
that I can answer about digital marketing,
Google Ads, SEO, or Facebook Ads,
leave a comment on the video or blog post,
or contact me directly.
If you need help with yourcompany's digital marketing
and want to grow leads,sales and profit now,
contact me now at [e-mail].
And until next time,we'll see you on the web.