How To Measure SEM Return On Investment

Web marketers and advertisers understand the importance of marketing a business on the internet. They spend hundreds of dollars for all sorts of search engine marketing campaigns and projects. Investing in search engine marketing projects is often deemed worth it. The result is higher search engine ranking, more traffic and higher sales.

But are you getting a good return on investment for all your search engine marketing campaigns? Are you getting good return for every dollar that you spend in marketing your business? To be able to answer these questions, you must measure the search engine marketing (SEM) return on investment (ROI).

Measuring SEM Return On Investment

How do you measure the return on investment or ROI of all your search engine marketing or SEM efforts? It is estimated that when a website is listed on the first page of the search results, it gets at least 65% of the search engine traffic for a particular search term.

So for instance a website is optimised for the keyword phrase “web marketing services”, we’ll get the average daily searches for this phrase. If for instance the keyword phrase “web marketing services” receives at least 1000 site visitors per day and the website is listed on the first page of the search results, then the website will get 65% of the average daily searches of 1000.

The website can get as much as 650 site visitors for the keyword phrase “web marketing services”. You can use the same formula on all the other keywords that you use in your website. So in terms of traffic, a website with higher ranking on the search engines gets good return.

After measuring the number of traffic that your website receives, the next thing to measure is the conversion rate. The conversion rate refers to the ratio of sales that a website receives to the number of site visitors. How many site visitors were converted to customers? Approximately, the average conversion rate is about 2-3% of the total site visitors. So back to the example, from the 650 site visitors, the ideal conversion is 13 customers.

So for example, you spent $1000 on your search engine marketing campaigns and each sale costs $200, you get $2600. This is a good return on investment for all your search engine marketing expenditure. Always make it a point to measure return on investment (ROI) to ensure that you are not spending too much and that you are getting good returns for all your search engine marketing efforts.

Measure ROI to identify whether you are getting good returns from your efforts and expenditures or not. Please visit Tracking And Analysis Service to get an expert’s help. For more information, please contact our Conversion Tracking Experts.