Search Engine Optimization

Archive for - August 7, 2008

SEO ROI Search Engine Optimization ROI 2

SEO ROI part 2

Google pay per click model is extremely effective, driving highly relevant and motivated prospects to the advertisers.

In order to measure the approximate market value of search engine optimization we took pay per click advertising as a measurement. The calculation will give you an estimate of SEO investment value in comparison to market value of keywords. Since pay per click pricing is independent and market driven, we can take a price of each keyword and relate it to the clicks you will be getting with successful SEO campaign.

Google Traffic Estimator tool provides accurate figures for pay per click prices.

Prices reflect real dollar amount paid by advertisers per each click.

As an example we used the following keywords:

Local Search:

toronto car rental

calgary lawyer

Global Search:

get a mortgage

business accounting software

Keyword Market Value

PPC = Pay Per Click

Results for Canada and US using Google Traffic Estimator

Keyword Average Cost

Per

Click

Estimated Daily

Clicks

Estimated Cost

Per Day

CostPer Month

(PPC only)

Local Search
toronto car rental $3.21 77 $247.17 $7415.1
calgary lawyer $2.30 8 $18.4 $552
Global Search  
get a mortgage $8.42 14 $117.88 $3536.4
business accounting software $8.04 49 $393.96 $11.818

Total Searches Per Day

If you use Google Traffic Estimator tool, you will notice that Google does not provide data for “total clicks per day”. Traffic Estimator only serves data for PPC clicks, excluding natural search results.

In order to estimate the approximate number of total clicks per day, including natural search results, we used 70% / 30% rule.

It has been found through numerous studies that around 20%-25% of all searches conducted on search engines go to pay per click advertisements. Rest of the clicks go to natural search results, which is around 75%-80%. Since this is an estimate, we will assume that 70% of all clicks go to natural search results and 30% go to pay per click advertisements.

Knowing that 70% of clicks go to regular search results we estimate total number of clicks from data provided by Google Traffic Estimator Tool.

For example:

“toronto car rental” will receive around 77 clicks per day going to PPC advertisements exclusively. Since PPC only constitutes approximately 30% of all clicks on search engines, it is safe to assume that 77 clicks represent 30% of total daily clicks for the keyword “toronto car rental “.

With that knowledge it is easy to estimate total number of clicks, both for PPC and natural search results.

30% of 256 = 77     (clicks going to pay per click)

70% of 256  = 179  (clicks going to natural search results)

From that number, we can estimate value of search engine optimization related to the market value of keywords.

70% of total clicks per day X average cost per click = market value of your SEO investment

Results for Canada and US

Keyword Average Cost

Per Click

Total Clicks

Per Day

Estimated SEO Clicks Per Day (70%) Estimated SEO Investment Value per Day
Local Search
toronto car rental $3.21 256 179 $574.59
calgary lawyer $2.30 26 18 $331.2
Global Search  
get a mortgage $8.42 46 32 $269.44
business accounting software $8.04 163 114 $916.56

Estimated Annual SEO Investment Value

Results for Canada and US

Keyword Average Cost

Per Click

Estimated SEO Clicks Per Day (70%) SEO Investment Value Per Month SEO Investment Value Per Year
Local Search
toronto car rental $3.21 179 $17.237.70 $206.852.40
calgary lawyer $2.30 18 $9.936.00 $119.232.00
Global Search  
get a mortgage $8.42 32 $8.083.20 $96.996.40
business accounting software $8.04 114 $27.496.80 $329.961.60

Note: each keyword given as an example represents separate market. “toronto car rental” targets car rental industry, while “get a mortgage” targets financial market. In a basic SEO campaign we target at least 5 keywords per industry, multiplying investment value ten fold.

SEO Expert Search Engine Optimization Services

SEO Expert is a Canadian search engine marketing company, located in Montreal, Quebec, targeting national and international markets. SEO Expert is one of the leading SEO companies in Canada, as we rank on top of search engines for terms such as:

SEO Expert has over 5 years of dedicated search marketing experience and offers search engine optimization solutions to Canadian and American businesses. We offer both highly effective Pay Per Click management services and natural search engine optimization.

Please contact us to address questions about search engine optimization, your concerns, or to inquire about pricing for expert level search marketing solutions.

© Copyright Search Engine Marketing Inc. 2008

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