ROI and Search Engine Marketing Dollars

These days, every business is at least somewhat interested in talking about return on investment (ROI) about their website and online ecommerce initiatives.  The following series of articles attempt to describe in some length about the following topics.

  • what is ROI?

  • How can one get better ROI with low budget?

 

What is ROI (Return on Investment)

According to Wikipedia definition of ROI, it is the ratio of money gained or lost on an relative to the amount of money invested.  While discussing about the ROI and Search engine marketing, it becomes imperative that one has a complete knowledge of what he or she is looking for.

There are lots of people out there who write pages after pages in the hope of getting higher value and ranking in the SERPs and thus hope to convert as many visitors as possible into customers immediately.  While doing so, they somehow think that their website needs to be perfect to get high rankings and thus get greater ROI.  However, pratically, it is not possible to expect a great perfect website from Day 1. It certainly takes, planning, efforts and,.... good luck.

To get higher rate of investment or the marketing dollars a firm spends on hiring Search Engine Optimization specialists, one needs to be watchful of what their competitors have been doing and what strategies they have to curtail your business growth and consequently your profits.  Once all the above is crystal clear to you, you are a in a good shape to thoroughly analyze the ROI of your website.

 

One can measure ROI on keywords they choose for their website pages by using the following formula.

keyword ROI = expected traffic x target product/service gross margin

The above formulas was mentioned a SEOMOZ website.

Better ROI With Low Budget

The best way for a low budget campaign to gain good ROI is

  • Adjust the content and make other necessary changes in your keyword strategy to make the content more valuable to the target visitors
  • Thoroughly review the log files of the website or the analytics the website may have been using to see the traffic patterns and the conversion goals of the website and the actual conversion rate
  • Prepare a summary of your findings and clearly let the customer do the link building and the rest on their own.