SEO 101: How To Calculate Return On Investment (ROI)?

You can determine the success of your SEO strategy by considering a few factors, such as your quality of website traffic, conversion rate, and other metrics. But if there is one thing that matters the most, it is your return on investment (ROI).


The value of an SEO campaign all boils down to the ROI. By measuring your ROI, you can find out how successful your SEO strategy is based on its number of leads and conversions.




The purpose of measuring or calculating your ROI is to compare the gain or loss from an investment relative to its cost. In doing so, you can evaluate the performance of your investment and identify any potential financial returns.


When it comes to SEO services in Singapore, the same process of calculating your ROI applies. You can measure the efficiency of your SEO strategy by considering your rankings and the quantity of organic website traffic.


To calculate your SEO ROI, try using Google Analytics, a tool that lets you track and report data. Using it is for measuring your ROI is a good idea, especially for eCommerce SEO.


Calculating your ROI is vital for eCommerce SEO. Doing so will let you know how much money you are earning. Also, more than half of all web traffic comes from organic search. By measuring the ROI of your SEO, you can find out which channel is generating the most results.


The only problem is that accurately measuring your ROI can be difficult. Unlike other digital marketing services in Singapore, such as pay-per-click (PPC) advertising and search engine marketing (SEM), SEO usually does not come with fixed costs. That means you will find it hard to attribute your SEO strategies to your investments.


Here’s how you can calculate your SEO ROI.






To calculate your ROI, you need to combine all the costs associated with your digital marketing channel. Usually, the combined expenses include your in-house or agency SEO resources and investment in tools for SEO services.


Calculating your in-house or agency resources can be tricky. You have to break down the cost of hourly rates spent per person. If you’re outsourcing your SEO services in Singapore, it is a lot easier since hiring a digital agency usually comes at a fixed price.


As the cost of investing in your tools, consider the amount of money spent monthly. Most SEO tools require monthly payments or subscription fees, so make a detailed report of your investment at least once a month.


Combine all of these costs when calculating your ROI. Remember that your expenses may change monthly, so gather data and report all of your associated costs once a month to measure your ROI more accurately.



With the help of Google Analytics, you can track conversions and discover if your website is boosting sales directly. It is advisable to set up conversion tracking by using Google Analytics. To do so, head to Google Analytics and use the “eCommerce overview” to report all of the sales associated with your eCommerce SEO.


eCommerce Overview



This part of Google Analytics will allow you to monitor your performance. Try setting it up immediately if you plan to calculate your ROI in the future. It will help you prepare ahead of time.




After gathering all essential data, the next and final step is to calculate your ROI. To do so, use this formula: 


ROI Formula


For example, let’s say you invested $50 dollars in SEO services. By the end of the year, the value of your investment rises to $60. In that case, your ROI is 10%, as long as no dividends were part of the equation.





Calculating your ROI can be exhausting and time-consuming. Since it’s an essential part of SEO, perhaps you can outsource your SEO in Singapore to an agency?

Contact OOm at 6391-0930 for more information.