Finding the right SEO budget is a tall task. The thing that makes things even more challenging is that business owners are generally skeptical about search engine optimization. Some of them think that SEO is a scam, which prevents them from realizing its true value.
Whatever the case might be, boosting your existing search engine rankings is the best marketing strategy for increasing online sales. This is especially true if you manage to rank for lucrative money keywords. By driving more visitors to your site, you can also increase brand awareness and help other marketing efforts.
On the other hand, if you wish to get the most from SEO services, make sure they’re within your current digital marketing budget. Overpaying for any promotion can severely hinder your daily operations and potentially stifle your growth.
Basic considerations
If you’re serious about SEO, you should put a large portion of your overall marketing budget into this activity. This type of online advertising can provide massive benefits to your brand, but only if you can reach the top spots in Google.
The thing you should always remember is that you’re not alone on the market. Google search engine rankings are constantly shifting, and new players enter the field almost daily. Given such a dynamic environment, the best way of surviving is by keeping up with the trends and continuously increasing your marketing spend.
Before we get to other sections, here are a few main things you need to keep in mind:
The good thing about optimization is that it gives you a lot of leeway for experimenting. If you’re strapped for cash, you can simply focus on a specific task that would help you boost performance.
4. Analyze PPC costs
PPC analysis can provide an approximation of how much your traffic is worth. For example, if it costs $1 to advertise in Google for a particular keyword, that means you should pay $1 for each visitor your drive via organic traffic. By following this logic, to get 1,000 visitors via organic traffic, you should be prepared to spend $1,000.
Of course, the calculation is much more complex than that. When you get a certain number of monthly visitors, you can rest assured you’ll get similar traffic the following month. In other words, you get continuous benefits with optimization, so $1 spent on PPC and $1 spent on SEO aren’t the same.
The thing that makes PPC analysis so great is that it helps you approximate competitors’ marketing budgets. Of course, this is only for paid advertising, so you can’t say for certain how much they spend on search optimization. However, it can at least tell you in which ballpark you should operate.
5. Calculate purchase value and conversion
Another way to calculate traffic value is by calculating page traffic, conversion rate, and purchase value.
Start the analysis by checking how much traffic a particular page gets. You can utilize AhRefs, SEMRush, or Google’s tools for this particular task. Keep in mind that the traffic values are often underrated, so they could be much higher than the tool indicates.
Once you know how many visitors the website gets, it’s time to analyze conversion. There isn’t any specific tool that can help you with this task. Instead, it’s best that you use industry data. On average, online shops have a conversion rate of 2.5% to 3%. The general rule of thumb is that higher-value products have lower conversion and vice versa.
After that, you need to find the value of an average purchasing order. According to the latest global data, a person spends $93. These figures are higher in economically developed countries such as the US, the UK, and Japan. So, you might have to tweak the data accordingly.
When you get all the info, it’s time to make a calculation. For example:
Bear in mind there are several issues with this model. First off, we can’t tell for certain whether all these purchases are made by unique clients (unless they’re made through our site). So, instead of 500 customers, a site might’ve received 450 unique clients during the month.
Furthermore, we don’t know if we can retain the same placement in Google for a longer period. We might get these figures for the next two or three months, but we won’t be able to squeeze the entire lifetime value from each person.
In theory, these people will return to our site even if we’re no longer the first result in Google. However, if we drop in rankings and the customers primarily use Google search to find products, there’s a good chance they’ll eventually switch providers.
If you wish to hire a premium SEO services company, look no further than MiroMind!