This article illustrates the importance of search engine optimization for a business, and the kind of ROI you can expect once you invest in SEO. Investing in marketing is important for your business growth. But where should you bet your money – in offline resources or online solutions? Predictably the smartest answer would be to invest on the web. More specifically in Search Engine Optimization (SEO).
Now, the obvious question in your mind would be why SEO, why not Google Ads or social media marketing? These are valid questions especially when you look at the overwhelming options in digital marketing that are all appealing.
In this blog, we shall delve deeper into the importance of SEO and why you must invest in it. We shall also talk about the ROI you can expect from investing in SEO. Let’s get started.
What is SEO?
It’s important to begin by properly understanding the meaning of SEO. Simply said, search engine optimization is the method of organically helping a business website reach the top of the search engine rankings page through consistent efforts. SEO aims to help potential customers find you faster whenever they search for a related search query. Though it takes time for SEO to show results, persistent performance ensures better rankings which then lead you to more customers, traffic, and revenue.
What Makes SEO So Important?
SEO is one of the main drivers of digital marketing, and we aren’t kidding! The latest stats for 2022 reveal as much.
- 68% of people begin their customer journey with a search engine.
- Almost 92% of the search engine market share is dominated by Google followed by Bing, Yahoo, Baidu, and Yandex.
- 61% of B2B marketers prefer SEO and organic search results as they generate more leads.
- As many as 70% of online marketers agree that SEO is better than PPC in generating leads and sales.
- Many do not scroll past the first page of a search engine results page. Want to know their percentage? As many as 75% of people do not go beyond the first page of SERP.
We can go on and go with the stats, but you get the drift, right?
What is the ROI of SEO?
Needless to say, SEO is crucial for the success of your digital marketing efforts. But what about return on investment? How do you calculate your ROI after investing in something long-term?
Unfortunately, there isn’t any straightforward answer to this. There isn’t a formula that can be used to measure ROI. There are various factors at play that determine your returns. Whether you choose to hire a professional boutique marketing agency, an SEO consultant, build an in-house team, or take the DIY approach will largely decide your fate. Your approach to SEO will decide how long it takes to show results.
However, instead of leaving this at such a vague point, let’s try to decode ROI with an example.
Decoding ROI of SEO With a Single Keyword
For SEO to be successful, you need to first do keyword research. This gives you a list of competitive keywords for your niche. For simplicity’s sake, we take that you are competing with just one keyword in your niche. Let’s see how the returns work with this single keyword.
Your target keyword is “downtown dentist in Michigan”. As this is a location-based search query, there is likely to be over 1000 searches with these exact words on Google every month. Additionally, its close variants will see more than 5000 searches per month.
Once you get the top ranking on Google’s SERP on this keyword, it is likely to drive over 300 visitors to your website every month.
If you see a 1% conversion rate (that is, even if only one percent of qualified visitors turn into customers), this will mean that your website attracts a new customer every 10 days!
That’s only from one keyword. Now, let’s talk about the close variants of the primary keyword. If with those keywords, you rank second or third on the SERP, you could get approximately another 60 customers per year.
Now, look at it in perspective. You have gained close to 100 assured customers in a year with just one keyword! Of course, this was just an example. For every business, SEO experts will work with many keywords. Now imagine the conversion rate!
How Does ROI of SEO Compare with ROI of PPC Ads?
There is hardly any doubt that Google Ads are important. But do they command more importance than SEO? Should businesses allocate more budget to the former instead of to the latter?
The answer to these questions lies in the rate of customer acquisition.
Taking the earlier keyword (“downtown dentist in Michigan”) as an example, for a Google ad, you would approximately be paying $5-$6 for every click.
If the average click-through rate is 1.91%, then in all likelihood, it will bring you about 20 visitors to your website. Now, if the conversion rate is 1%, you would need to run the Google Ads for 5 months to convert one customer.
The cost of converting every new customer can add up to $600 (keeping in mind the CPC of $6 and a 1% conversion rate).
When you run Google Ads along with your SEO, it’s a smart investment. In fact, it is a smart move for a law firm, dental clinics, insurance agencies, etc. But adequate focus on SEO will lead to more conversions, with lesser strain on your budget.
How Long Does SEO Take to Return on Investments?
One of the most asked questions on SEO is, “How long does it take to show results?” You must understand here that SEO demands a long-term commitment. You do not invest today and see results tomorrow. You must wait at least 6 to 12 months to see any results. But once the traction begins, the growth is exponential.
That’s the reason why SEO still is the most popular and persistently performing digital marketing strategy.
Once you realize the advantages of investing in SEO for ROI, you should start looking for an SEO agency that delivers. Cyrusson Inc. is a boutique, full-service digital marketing agency that specializes in search engine optimization along with content marketing, social media marketing, website development, and more. If you want to kickstart your business’s digital marketing campaign, Cyrusson Inc. is just the solution for you. Call us today or book a free consultation today to learn more about our SEO services.