Calculating Keyword ROI for SEO

When it comes to predicting results, Search Engine Optimization campaigns are notoriously hard to pin down. You know you want to rank #1 for your favorite keyword. But how much real revenue can you expect from that ranking? And how much time and money is it worth putting in?

With some quick calculations on the eBoost Keyword Analysis Tool and then some simple math, you can easily calculate the expected ROI of any keyword.

The Keyword Analysis tool takes the Search Volume of a keyword, the Conversion Rate of your website, and the Revenue you make per conversion then applies the Click Through Rate (CTR) you can expect by ranking in Position 1–10 in Google. The CTR for each position is a general industry number based on the famous AOL click data.

The tool then instantly spits out the estimated revenue you can expect from that ranking based on how your specific website performs.

How To Calculate Expected Keyword ROI

Step 1: In the Keyword Analysis Tool, enter Monthly Search Volume for your keyword (you can use the Adwords Keyword Tool to find this number).

Step 2: Enter the Conversion Rate (%) and Revenue per Conversion ($). You can use your Analytics package to find general site averages, general organic traffic averages, or even specific numbers from the keyword if the information is available.

Step 3: Take the monthly revenue number from your target position in Google (the result from the Keyword Analysis Tool) and subtract the amount of money you currently make per month from that keyword.

Step 4: Calculate ROI over a specific time-frame by multiplying that number by 6 (months), 12, 24 etc. and then dividing by the amount of money you plan to spend on SEO to achieve that ranking. Remember to include your time and grant yourself a reasonable $/hour. Also remember that SEO is a long-term strategy that will often continue to bear fruit long after your campaign is over. So make sure to keep that in mind when calculating ROI as well.

This will still of course be a rough estimate with many variables. But it’s a great way to apply a little math and science to an equation that is too often completely misrepresented or not even calculated at all. Using this process is a great way to set realistic benchmarks by which you can evaluate your SEO campaign on an ongoing basis.

- Evan LaGasse, Consultant, eBoost Consulting

Next Steps

eBoost Case Studies

Facebook Dynamic Product Ads - eCommerce Success Story

How we generated 327% Return on Ad Spend using Facebook Ads

Situation

A small niche apparel product company selling ~$15-$20 items online was looking to grow after sales plateaued after several years in business. The products were high quality and consistently garnered 5 star reviews from customers, but sales weren’t growing as fast as the owner would have liked.

Challenge

The products were high quality and well-priced, but the market was relatively small and sales were not growing. The company had done extensive tests with all major advertising platforms in the past but could not get any of them to produce a positive return on ad spend resulting in significant sales volume.

eBoost Solution

  • After conducting a thorough analysis of analytics data and purchase behavior, eBoost set up Facebook Dynamic Product Ads campaigns to serve extremely relevant and timely ads to users who had left the company’s site without making a purchase.
  • eBoost tested several creative templates and ad placements in order to find the winning combinations that produced both high sales volume and positive return on ad spend

The Results

  • In the first 30 days of advertising, eBoost averaged a 327% return on ad spend with Facebook Dynamic Product Ads
  • In the first 30 days the client’s business nearly doubled with an 87.4% increase in gross revenue and a 93.6% increase in # of items sold

How would these results impact your business? Contact Us to set up a quick call to see if you would be a good fit. ... read more »

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The Importance of Site Architecture in SEO

When starting a new Search Engine Optimization project, any half-way decent SEO would focus on keyword research, link building strategies, Title Tags, Copy, XML Sitemaps and all the other basics that have to get done. But an often overlooked facet of Search Engine Optimization is the site architecture - in other words, the way the website is laid out and how the pages connect to each other. I would argue it's the single most underrated area of SEO. ... read more »

Did You Know?

80% of unsuccessful searches are followed with keyword refinement