The ROI of SEO

Understanding investment costs and potential returns

Richard Rowley

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 and 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:

  • Keyword Research and Strategy Development: $100–$150/hr, 2 hours per page, $200–$300
  • Content Creation: $50–$100/hr, 4 hours per page, $200–$400
  • SEO and Technical Optimisation: $75–$120/hr, 1 hour per page, $75–$120
  • Graphic Design and Multimedia: $65–$90/hr, 2 hours per page, $130–$180
  • Website Development and Integration: $100–$150/hr, 1 hour per page, $100–$150
  • SEO Monitoring and Adjustments: $80–$120/hr, 2 hours per month, $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.

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): 1,800
  • Conversion Rate: 2%
  • Total Conversions (Monthly): 36
  • Average Order Value: $25
  • Total Revenue (Monthly): $900

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.

Conclusion

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

Further Research Needed

  • 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.
  • Add the impact of removing or replacing pages.
  • Include the carbon footprint of pages.
  • Include a CTR growth curve demonstrating the growth from position 100 to position 1 over a period of time.
  • Include different types of pages: boilerplate/automated, custom build, editorial, and video.