One of the most basic tenets of just about any marketing campaign out there is to calculate the ROI or Return on Investment. Now, considering that you would either be using SEO or PPC ads in order to gain maximum exposure for your website, here’s what you need to do in order to calculate your ROI:
Calculating ROI for PPC
There are different methods that you as a business focused on making profits can use in order to calculate ROI for PPC when indulging in digital marketing company.
- The returns that you acquire over ad spend
When it comes to PPC, the term ROI basically refers to the term ROAS, which stands for Return on Ad Spend. If you want a really simplified explanation, then, ROAS is basically the cost of your PPC campaign subtracted from the revenue that you have gained, divided by the overall PPC cost.
- The returns gained over your investment
Now, the one thing that you need to know about PPC is that it isn’t just the click costs that you need to consider. Without going into the details of the costs that you need to spend on in order to run your business and market it to customers (which happen to be other businesses), it is necessary for you to factor in all of them in order to work out the returns that you have gained over your investment.
- Profit Per Click and Profit Per Impression
Now, calculating your profit per click tends to be harder than calculating ROAS. For one, you would need to acquire data for total costs, clicks, impressions and total sales value. Now, take the total cost and subtract it from the total sales value, and you’re done. On the other hand, for calculating the profit per impression, just divide the profit you have made by the impressions you have received.
Calculating ROI for SEO
When it comes to calculating ROI for SEO, there’s an anticipated ROI, and an actual ROI. Here’s a look into them:
- Anticipated ROI
In order to calculate the anticipated ROI, it is necessary for you to know the:
- Average order value
- Basic conversion rate of your website
- Average visits that you acquire on a monthly basis
Now, to calculate ROI, you need to subtract the cost that was proposed to cover your SEO project from the revenue that you anticipated to receive from your SEO efforts, and then divide it by the cost that was proposed for the fulfillment of your SEO project. Go to website UnitedSEO.ae for more information.
Moving on, the actual ROI for your SEO efforts can be acquired by adding the total goal value achieved by means of SEO and the revenue that you have attained. Once done, subtract it from the cost of managing the entire SEO campaign, and then divided it by the cost of managing the SEO campaign.