How To Predict And Measure Search Engine Marketing ROI

Online advertisers and search engine marketers spend billions in search engine marketing programs. The cost of these search engine marketing programs increases each year. But is this cost worth the benefits? Is there a way that search engine marketers can measure the results or the return on investment in search engine marketing?

There are ways to measure search engine marketing’s return on investment or ROI and even predict whether or not, you will have a good return on investment just in case you choose to perform search engine marketing on your website. There are a number of free online tools that helps search engine marketers even at the start of their search engine marketing activity. One is the Overture’s free keyword suggestion tool. The keyword suggestion tool will give search engine marketers idea as to how many times a particular keyword or keyword phrase is searched per month. The information you get will be viable in terms of weighing the possible return on investment or ROI of your search engine marketing endeavor.

Getting The Number of Possible Site Traffic

Before you spend dollars on search engine marketing, consider some figures and formulas to see whether or not it is worth spending dollars for search engine marketing. It is roughly estimated that sixty five percent (65% ) of the traffic coming from the search engines goes to the top 10 listings on the search results. If you want to perform search engine marketing, you need keywords. For instance, if your chosen keywords get at least 500 searches a month and your website is listed on the top 10, then your website will get at least 325 visitors using that keyword.

So the formula in predicting whether or not you will get a good return on investment from search engine marketing is simple. You simply get the number of times a particular keyword is searched per month and get its 65% (supposing you are aiming to get your website on the top 10 listing of the search results). For better understanding, please look at the illustration:

Getting The Number of Possible Lead

After you get the possible site traffic that your website will most likely receive, the next thing to look into is your website’s conversion rate. Conversion rate refers to the ratio of leads or sales that your website receives per visitor amount. The average conversion rate is 1-2%. Thinking your website receives the average conversion rate, then you will have at least 3 leads. The formula used is as follows:

Getting The Possible Return on Investment

To get the possible return on investment, get the number of possible lead and multiply it by the amount of your single sale. Say for instance, you offer service that costs $1,000. Multiply the number of leads by 1000. The formula is as follows:

If you are looking into spending $1000/month for your search engine marketing endeavor for 3 months, and you get $9000 sales out of it, then your return on investment is pretty good.

Maximize your search engine marketing return on investment. This is easy if your website is listed on the 10 of search engine results. Need to be on the top 10? Contact our Search Engine Marketing Specialists or be one of the many who have applied for the Free SEM Analysis today.