Calculation of ROI i.e. Returns on Investment is a big challenge faced by many SEO professionals today. SEO has the benefit related to keyword volume data, which gives a detailed insight into the topics, which are interesting for people.
However, you have to understand well the changes you must make for SEO activities. In this blog post, we have discussed the way in which we have designed and gained expertise in the art related to estimating the lift for your SEO activities.
The foundation related to most of the SEO tasks start with a detailed keyword analysis. Google and various other SEO tools provide relevant data of the way, in which users search for specific terms. The data is often useful in the case of paid search for the estimation of advertisements’ performance. However, SEO professionals tend to use the respective data to identify the opportunities ahead.
1. Conduct Detailed Keyword Analysis
You have to collect the keyword estimates according to your keyword analysis. For this, you may use the Keyword Planner by Google if you own a Google Ads account. Alternatively, you may search for other free and paid tools, which use almost the same type of data, as you may find in a Keyword Planner. You have to select the targeted words with the estimated data related to their search volume.
2. Download The Keyword Data
When you stay aware of the search terms or keywords to target for your SEO project, you have to calculate the difference between your estimated lift and your current performance. Particularly, you have to check the number of clicks, current impressions, CTR i.e. click-through rate, and average position, as mentioned in the Google Search Console.
You have to collect data for each of the selected keywords for 12months to obtain ROI for your SEO. However, Google limits the keywords’ data and pages to a maximum of 1,000. Hence, you have to use free tools, which let you access each of the keywords and let you download the respective data.
3. Calculate Your Current Ctr In Your Average Position
After you get each of the keyword data in your selected tool, you have to download the 12months worth of the different keywords and relevant data in a CSV. The click-through rate and the average rank position are the two relevant data essential for the exercise. After this, you have to set up a sheet, which contains the data related to average CTR according to the average position.
Here, you must use AVERAGEIFS formulate to check the position and check the average from various other CTRs calculated across all of your selected keywords. Whenever you target a particular terms’ set, you have to split the average CTR according to the position for respective terms. The activity helps you because branded CTRs are often high as compared to non-branded searches in the case of many organizations.
4. Identify Keyword Opportunities As Per Keyword Analysis
You have to identify keyword opportunities based on proper keyword analysis. Accordingly, you must check-
- The keywords, for which you get good ranks
- The places, where we achieve ranks for keywords
- The number of impressions we see for the keywords
- The click-through rate
- The number of clicks
Based on the data of current keywords, you have to calculate the CTR data. You have to create an excel sheet that has a tab of Keyword Analysis i.e. keywords and their volume. Moreover, you have to create a new tab that shows Keywords to Target.
Other than this, you have to create different columns i.e. Volume, Impressions, Clicks, average position, and CTR. Later, use both AVERAGEIF and SUMIF formulae to track the current performance of each of the keywords or search terms.
The calculation should be the average in one-month numbers obtained via 12months’ of total data. Hence, your total impression according to the initial few positions should round down or round up to match with the volume numbers.
5. Summarize The Keywords
When you get a huge list of keywords, which you have to target based on keyword analysis, you must set up a keyword summary tab. For this, you must use AVERAGEIF and SUMIF formulae to obtain a high-level view related to your opportunities. You have to look for opportunity terms to target for your new project. Moreover, you have to calculate the potential clicks based on the collected data related to the average click-through rate.
6. Estimate The Number Of Clicks Based On Volume Data
When you use volume data to conduct keyword analysis, you will know the estimated impressions. Hence, you have to use only SUMIF formulate for the calculation of the estimated impressions. You have to conduct reverse calculations while dealing with the rest of the available data.
You have to use a proposed average position to find out the estimated CTR data and to calculate the estimated number of clicks. However, we do not have any knowledge related to the current average position. Thus, we have to put our best possible efforts and judge properly on where we can secure ranks for the respective terms.
Accordingly, we have to multiply the impressions by the estimated CTR to obtain the estimated clicks from a particular project. You have to keep in mind that the estimates obtained are according to the average calculated per month for a one-year or 12-month period. However, if you want additional calculations for a particular quarter you have to multiply the number by 3, by 6 for half-yearly, and by 12 for the total yearly estimate.
Once you know the average conversion rate and the revenue obtained from your conversion, you may use such numbers for estimating the revenue of your upcoming project. On the other side, if you want to improve on your already ranked terms, you may enter the position, which you may obtain easily and use the respective calculations.
Conclusion
Therefore, with the mentioned simple and easy steps, you will expect to calculate the returns on investment for the SEO activities you do for a specific set of your selected keywords.
