Have you heard the name of Brett Farmiloe? Farmiloe is a founder & CEO of Markitors, a digital marketing company that provides the best SEO marketing strategy to small businesses owners.
In this article, we will use Farmiloe’s experience and research to find out the worth of SEO based marketing strategy for small business.
The SEO worth is based on two factors:
- Incremental increases in search positions worth to business
- Cost alternatives in the place of SEO
Firstly, what is SEO marketing strategy? SEO is an act of optimizing a website to be more search engine friendly. The strategy involves a wide range of areas ranging from keyword optimization to link building. It is a time-consuming process but proper implementation can do wonders.
According to Jupiter Research based on SEO users, the search engine is used by 81% internet users to find their website. The complex method of Google rankings force the users to opt for SEO techniques as it provides easy growth without having to pay Google for the privileges.
So in order to determine the SEO search positions, use the formula mentioned below:
Keyword search volume * Expected click-through rate * Average conversion rate * Average order value.
Let’s take the term “Digital Marketing Company” searched 900 times per month as an example to see its ranking.
Let’s put the values into the above-mentioned formula and finding out the best case scenario.
- Keyword search volume=900
- Ranking No.1, CTR=36.5%
- Average Order Value = $2,000 Per Month
- Average Conversion Rate = 2%
900*36.5%*2%*$2,000 =$13,140 Revenue
Now, let’s find out the current scenario, here only the rank changes to 23, hence CTR is equal to 0.3%.In this case:
900*0.3%*2%*$2000=$108 Revenue
Finally, we have our revenue range, for the term “digital marketing company”:
- Ranking No. 23 =$108 per month
- Ranking No. 1 =$13,140 per month
The difference between rankings can be covered by enhancing search ranking (in terms of keyword’s ranking) and the time taken to rank (based on the SEO Marketing Strategy devised by your SEO manager).
When a business needs to cut down their costing, they try to seek the cost alternatives of paid advertising.
The best SEO alternative is the PAY-PER-CLICK (PPC) strategy. It is a process of buying advertisements and sponsored links that will be visible in the Search Engine Results Pages (SERPs). PPC enables businesses to spread their messages out to a large sector of the population in a very short period of time.
The Google AdWords PPC ads put the one right on the top sponsored search results, above the organic search results. These Sponsored in comparison to organic search results.
Based on the table above:
- Keyword search volume=900
- CTR=5% (Google ads have lower click-through rates)
- Bid for this keyword=$25
Let’s calculate,
900*5%*$25= $1,125 per month in ad costs
Further Revenue,
900 * 5% *2% *$2,000 = $1,800 in revenue
The above equations show positive Rate-On-Investment (ROI), either you manage ads yourself or pay 500$ to someone.
Hence in order to use SEO for your small-scale business check its worth by using tools mentioned above.