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How to track investment in SEO against returns Neil Walker CTO Just Search Ltd
Who am I? Who am I? Neil Walker  Position: Chief Technical Officer Company: Just Search Ltd  Expertise: ,[object Object]
Pay Per Click
Analytics Qualified
Conversion Rate OptimisationExperience ,[object Object],Twitter.com/TheUKSEO www.seomad.com
Disadvantages of SEO over PPC You can’t work out traffic for SEO? You can’t track conversions in SEO? You can’t rank 1st page instantly in SEO? You can’t work out organic CTR? You can’t predict required budgets in SEO? You can’t optimise 100’s of phrases in SEO? More people click on sponsored adverts? You can’t improve website conversion rate with SEO? You can’t do SEO without PPC? SEO costs less than PPC? False False True False False False False False False TRICK! Twitter.com/TheUKSEO www.seomad.com
Learning Objectives The purpose of this seminar is to show you how to create a factual SEO Business Plan / Case by: Predicting organic traffic to your website Analysing the potential income Studying the investment required Working out profit & loss for your business plan. Carrying out ongoing tracking of your predictions Looking at long term goals by reviewing the potential from ranking between positions 10-5 against 3-1. Twitter.com/TheUKSEO www.seomad.com
Google’s Domination Twitter.com/TheUKSEO www.seomad.com
Click Through Rates
Organic vs.. PPC Click Through Rates Pt.1 Twitter.com/TheUKSEO www.seomad.com
Organic vs.. PPC Click Through Rates Pt.2 Twitter.com/TheUKSEO www.seomad.com
Organic Click Through Rates (Eye Tracking 2004) People have been interested in CTR for many years. This image was highlighted by SEO Researcher.com based on research from Cornell University from 2004 Twitter.com/TheUKSEO www.seomad.com
Organic Click Through Rates (AOL 2006) August of 2006 AOL leaked millions of search records Twitter.com/TheUKSEO www.seomad.com
Organic Click Through Rates (Google 2010) Pt.1 This month GWT enhanced their Top Search Query Function. At Just Search we compiled sample data from 100 clients across 1500 key phrases. Twitter.com/TheUKSEO www.seomad.com
Organic Click Through Rates (Google 2010) Pt.2 We took the data and also segmented in by Key Phrase length, again this revealed some interesting information about ranking No.1 Twitter.com/TheUKSEO www.seomad.com
Organic CTR From the collated data we can now make an educated guess at the Click Through Rate if your website ranks on the first page for a given keyword Position 2-10 = CTR 4.85% Twitter.com/TheUKSEO www.seomad.com
Conversion Rates
Website Conversion Rates PPC is a good way to find out your website’s conversion rate, however if you do not have this luxury, there are a number of sources which can give you an idea of Average Conversion rates. Twitter.com/TheUKSEO www.seomad.com
Website Conversion Rates From the collated data we can now make an educated guess at the conversion rate of your website Average Conversion Rate = 2.9% Twitter.com/TheUKSEO www.seomad.com
Keyword Analysis
Keyword Analysis Pt.1 Use a tool to give you the predicted traffic i.e. https://adwords.google.com/select/KeywordToolExternal Microsoft-advertising-intelligence https://adwords.google.com/o/Targeting/Explorer Twitter.com/TheUKSEO www.seomad.com
Keyword Analysis Pt.2 We now have the following data: ,[object Object]
Average Website Conversion Rate
Exact predicted Monthly Traffic per keywordWe now need: ,[object Object]
Average Gross Profit per service / product.
Average Order ValuesTwitter.com/TheUKSEO www.seomad.com
Income, Investment & Timescales
Predicting Timescales This requires expertise!! ,[object Object]
If you’re agency-side, then look at all the factors required to gain a ranking and use your experience to predict a timeline.Twitter.com/TheUKSEO www.seomad.com
Investment Required Again client-side – You will get potential cost from your SEO Provider. Agency-side – You need to think about: Twitter.com/TheUKSEO www.seomad.com
Potential Income Finally, to put your business plan together you need to know your potential Gross Profit %. ,[object Object]
 Or even better a GP per product. You will also need to look at your potential Average Order Values or Product / Service Prices ,[object Object]
 E-commerce site / service siteTwitter.com/TheUKSEO www.seomad.com
Quick Overview You should now have the following data: ,[object Object]
Website Conversion Rate
Potential Keywords & Traffic
 Predicted Timescales
Investment Required
Average Order Value
Average Gross ProfitTwitter.com/TheUKSEO www.seomad.com
Financials
Putting it together Use Excel to put all your information together Twitter.com/TheUKSEO www.seomad.com
Pivot Table Create a Pivot Table Analyse the potential income you will start receiving for each keyword  for each month. Twitter.com/TheUKSEO www.seomad.com
Investment Your SEO Company advises it will cost you £2500 pcm Will you make a profit? How long will it take you to break even? How long will it take to pay back your investment? Twitter.com/TheUKSEO www.seomad.com
Profit & Loss Year 1 Twitter.com/TheUKSEO www.seomad.com

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Internet world-2010-v3

  • 1. How to track investment in SEO against returns Neil Walker CTO Just Search Ltd
  • 2.
  • 5.
  • 6. Disadvantages of SEO over PPC You can’t work out traffic for SEO? You can’t track conversions in SEO? You can’t rank 1st page instantly in SEO? You can’t work out organic CTR? You can’t predict required budgets in SEO? You can’t optimise 100’s of phrases in SEO? More people click on sponsored adverts? You can’t improve website conversion rate with SEO? You can’t do SEO without PPC? SEO costs less than PPC? False False True False False False False False False TRICK! Twitter.com/TheUKSEO www.seomad.com
  • 7. Learning Objectives The purpose of this seminar is to show you how to create a factual SEO Business Plan / Case by: Predicting organic traffic to your website Analysing the potential income Studying the investment required Working out profit & loss for your business plan. Carrying out ongoing tracking of your predictions Looking at long term goals by reviewing the potential from ranking between positions 10-5 against 3-1. Twitter.com/TheUKSEO www.seomad.com
  • 10. Organic vs.. PPC Click Through Rates Pt.1 Twitter.com/TheUKSEO www.seomad.com
  • 11. Organic vs.. PPC Click Through Rates Pt.2 Twitter.com/TheUKSEO www.seomad.com
  • 12. Organic Click Through Rates (Eye Tracking 2004) People have been interested in CTR for many years. This image was highlighted by SEO Researcher.com based on research from Cornell University from 2004 Twitter.com/TheUKSEO www.seomad.com
  • 13. Organic Click Through Rates (AOL 2006) August of 2006 AOL leaked millions of search records Twitter.com/TheUKSEO www.seomad.com
  • 14. Organic Click Through Rates (Google 2010) Pt.1 This month GWT enhanced their Top Search Query Function. At Just Search we compiled sample data from 100 clients across 1500 key phrases. Twitter.com/TheUKSEO www.seomad.com
  • 15. Organic Click Through Rates (Google 2010) Pt.2 We took the data and also segmented in by Key Phrase length, again this revealed some interesting information about ranking No.1 Twitter.com/TheUKSEO www.seomad.com
  • 16. Organic CTR From the collated data we can now make an educated guess at the Click Through Rate if your website ranks on the first page for a given keyword Position 2-10 = CTR 4.85% Twitter.com/TheUKSEO www.seomad.com
  • 18. Website Conversion Rates PPC is a good way to find out your website’s conversion rate, however if you do not have this luxury, there are a number of sources which can give you an idea of Average Conversion rates. Twitter.com/TheUKSEO www.seomad.com
  • 19. Website Conversion Rates From the collated data we can now make an educated guess at the conversion rate of your website Average Conversion Rate = 2.9% Twitter.com/TheUKSEO www.seomad.com
  • 21. Keyword Analysis Pt.1 Use a tool to give you the predicted traffic i.e. https://adwords.google.com/select/KeywordToolExternal Microsoft-advertising-intelligence https://adwords.google.com/o/Targeting/Explorer Twitter.com/TheUKSEO www.seomad.com
  • 22.
  • 24.
  • 25. Average Gross Profit per service / product.
  • 27. Income, Investment & Timescales
  • 28.
  • 29. If you’re agency-side, then look at all the factors required to gain a ranking and use your experience to predict a timeline.Twitter.com/TheUKSEO www.seomad.com
  • 30. Investment Required Again client-side – You will get potential cost from your SEO Provider. Agency-side – You need to think about: Twitter.com/TheUKSEO www.seomad.com
  • 31.
  • 32.
  • 33. E-commerce site / service siteTwitter.com/TheUKSEO www.seomad.com
  • 34.
  • 42. Putting it together Use Excel to put all your information together Twitter.com/TheUKSEO www.seomad.com
  • 43. Pivot Table Create a Pivot Table Analyse the potential income you will start receiving for each keyword for each month. Twitter.com/TheUKSEO www.seomad.com
  • 44. Investment Your SEO Company advises it will cost you £2500 pcm Will you make a profit? How long will it take you to break even? How long will it take to pay back your investment? Twitter.com/TheUKSEO www.seomad.com
  • 45. Profit & Loss Year 1 Twitter.com/TheUKSEO www.seomad.com
  • 47. 2 Year Profit Forecast Twitter.com/TheUKSEO www.seomad.com
  • 49. Ongoing Tracking Use Google Analytics Set up Conversion Goals Set up Goal Funnels Set up E-commerce tracking (if applicable) Set up Webmaster tools and monitor CTR Set up web ranking reports to monitor positions This will allow you to track the Business Plan you are working towards Twitter.com/TheUKSEO www.seomad.com
  • 50.
  • 52. Product RevenueBy Keyword. This tells you which keywords are making money! Twitter.com/TheUKSEO www.seomad.com
  • 53. Let’s look at Real Data!
  • 54. Real Data – CTR & Conversion(Month 11) Twitter.com/TheUKSEO www.seomad.com
  • 55. Predictions vs.. Actual Data Twitter.com/TheUKSEO www.seomad.com
  • 56. Actual P&L Year 1 Twitter.com/TheUKSEO www.seomad.com
  • 59.
  • 61. How much is a top 2 position worth to you?
  • 62. How much are you willing to spend?Twitter.com/TheUKSEO www.seomad.com
  • 63.
  • 64. 5.6 x more traffic in No.2
  • 65. 3.7 x more traffic in No.3It is very likely that companies may need to double or triple SEO budgets to gain positions 1 & 2, this is well worth it! Twitter.com/TheUKSEO www.seomad.com
  • 67. Learning Objectives - Recap Twitter.com/TheUKSEO www.seomad.com
  • 68. Question / Debate Twitter.com/TheUKSEO www.seomad.com

Editor's Notes

  1. Resourceshttp://www.impactmedia.co.uk/blog/search-engine-news/search-engine-market-share-statistics-february-2010-283798/http://training.seobook.com/google-ranking-value
  2. Resources:http://paulpedersen.com/blog/2009/08/repositioning-of-google-sponsored-links/http://www.leadgenerators.co.uk/articles/sponsored-vs-organic-listingshttp://www.webmasterworld.com/forum81/4944.htmhttp://www.prweb.com/releases/2005/03/prweb213516.htm
  3. Resources:http://www.searchviews.com/index.php/archives/2009/08/search-news-google%E2%80%99s-move-left-leads-to-double-digit-rise-in-clicks.php
  4. Resources:http://training.seobook.com/google-ranking-value
  5. Resources:http://training.seobook.com/google-ranking-value
  6. Resources:Neil Walker (Research)
  7. Resources:Neil Walker (Research)
  8. Resources:http://content.websitegear.com/article/conversion_rate.htm
  9. Resources:http://content.websitegear.com/article/conversion_rate.htm
  10. Resourceshttps://adwords.google.com/select/KeywordToolExternalMicrosoft-advertising-intelligencehttps://adwords.google.com/o/Targeting/Explorer