The ROI of SEO

Understanding Investment Costs and Potential Returns

In digital marketing, Search Engine Optimisation (SEO) stands out for its ability to generate substantial returns by enhancing website visibility and driving targeted traffic. A well-executed SEO strategy can significantly increase your website's traffic, leading to higher conversion rates and increased revenue. However, understanding the investment required to achieve these benefits is crucial. This article delves into the costs associated with creating ten new pages on an existing website. It provides an example of the Return on Investment (ROI) you can expect from such an endeavour.

The Costs of SEO Page Creation

Creating new pages on an existing website involves several key steps, each incurring specific costs. Here's a breakdown based on average hourly rates in US dollars:

  1. Keyword Research and Strategy Development: Identifying the right keywords is crucial before creating content. A comprehensive strategy involves analysing search volume, competition, and relevance. Average cost: $100-$150 per hour, with an estimated 2 hours per page, totalling $200-$300.

  2. Content Creation: High-quality, SEO-optimised content is vital. This includes writing, editing, and proofreading. Average cost: $50-$100 per hour, with around 4 hours needed per page, amounting to $200-$400.

  3. SEO and Technical Optimisation: This involves optimising the content and the HTML source code of a page (meta tags, headers, etc.). Average cost: $75-$120 per hour, with an estimated 1 hour per page, totaling $75-$120.

  4. Graphic Design and Multimedia: Engaging visuals and multimedia can enhance the user experience and support your SEO efforts. Average cost: $65-$90 per hour, with around 2 hours per page, leading to $130-$180.

  5. Website Development and Integration: Incorporating the new content into your website might require technical adjustments. Average cost: $100-$150 per hour, with an estimated 1 hour per page, totalling $100-$150.

  6. SEO Monitoring and Adjustments: Post-launch, pages require monitoring and adjustments based on performance. Average cost: $80-$120 per hour, with an estimated 2 hours per month, amounting to $160-$240 for initial adjustments.

Adding these costs, the total investment for creating 10 new pages ranges from $7,650 to $11,390, assuming a specialist in that area handles each task. Which of these costs are fixed or variable is unique to each organisation.

You can add your own more accurate costs to the calculator below.

Example ROI Calculation

To illustrate the ROI of SEO, let's assume each of the 10 new pages targets a search term that has 2,000 searches a month and a position 1 ranking. With a 9% CTR and a 2% conversion rate and an average order value of $25, the potential revenue can be calculated as follows:

  • Monthly Searches per Page: 2,000

  • Monthly Visits per Page (9% CTR): 180

  • Total Monthly Visits (10 Pages): 1800

  • Conversion Rate: 2%

  • Total Conversions (Monthly): 36 (1800 visits * 2%)

  • Average Order Value: $25

  • Total Revenue (Monthly): $900 (36 conversions * $25)

To calculate the ROI, consider the initial investment range of $8,650 to $11,390 and the monthly revenue of $900. The ROI will become positive once the cumulative revenue surpasses the initial investment. Assuming the lower end of the investment scale ($8,650), it would take 10 months to break even, excluding ongoing costs.

You can run your own calculations here (and make changes): - https://colab.research.google.com/github/RichFold/roi_calculator/blob/main/logic.ipynb

Conclusion

Keep an eye on your costs, not just your expected return. Of course generative AI could potentially reduce these costs.

Further Research Needed

Several areas could be added to the calculation:

  • Split out variable costs from fixed costs.

  • Probably the most important missing factor is the on-going value the page or pages will bring and their life span.

  • The current calculation doesn’t consider the time it takes to get to the target position and any hosting costs.

  • Include the media flywheel impact on cost. The concept is to create great content. Use that great content to build an audience. Monetise that audience. Use that money to create more content. But it starts with great content. You can’t be sustainable without it. Source - https://twitter.com/JayCoDon/status/1517256973418434560.

  • Add the impact of removing or replacing pages.

  • Include the carbon footprint of pages.

  • Include a CTR growth curve. For example - Demonstrating the growth from position 100 to position 1 over a period of time.

  • Include different types of pages. For example - Boiler plate/Automated pages, Custom build, Editorial and Video.

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