Time Value of SEO – TVS

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“We need results now!” How often have I heard this as an SEO consultant? Probably more than I’d like to recount. If you need the results now, PPC is probably the best channel for your marketing budget. But follow me through with some of these numbers and remember that PPC is not a longterm investment.

Give It Some Time

Between the time to index your pages, time for search engines to find your links, and the search engines’ clickthrough testing, it can take a couple months just to get noticed by the ranking gods. I’m a proponent of recommending higher budgets to accelerate the ranking process, but never plan on seeing results in under 6 months.

On a pretty non-aggressive spend, don’t count on solid results in under a year. SEO is an investment.

SEO is an Investment

Have you ever told your SEO consultant that you can’t afford an aggressive budget? Let’s run some numbers:

Let’s say your site is currently ranking in the 8th position for a keyword that gets 1200 searches per month. 8th position traditionally gets 3% of the clickthrough from searchers. Let’s also say your conversion rate is 2%, and you make $200 from each visitor who converts.

1200 searchers x .03 (clickthrough percentage based on 8th position) x .02 (conversion rate) x $200 = $144.00/month

Now, consider increasing your rank to position 2 which traditionally garners 12% of all searchers’ clicks.

1200 searchers x .12 (clickthrough percentage based on position 2) x .02 (conversion rate) x $200 = $576/month.

That’s an ROI of 4 just for reaching the 2nd position! Imagine getting 42% of clicks from being in the 1st position!  That would create an ROI of 14. What amount of money is worth an ongoing 1400% increase in online sales? That’s something you’re going to need to decide for your business. I would make the argument that it’s an investment you should be willing to make, and the beginning of the year is a great time to allocate that budget. After all, $2016.00 per month, as opposed to $144.00 is definitely an improvement you can bank on. The results are definitely worth the investment.

Comments


Dan Garfield

Ideally you would start off with PPC and SEO so you get some instant results while you’re waiting on SEO and as long as your ROI is good and your PPC campaign is running well it will be worth keeping even after you’ve ranked for your SEO keyboards.

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