The Value of SEO - Cost per keyword

Calculating the value of being on page 1 of google is difficult.
We aim to provide you with a rough idea of how to calculate the value of being on page 1 of google in the top 3 search results.

What do we assume for SEO calculations

1. Being in the top 3 of google organic listings
2. If you are in the top 3 of google organic listings you will expect to see 2x the amount of traffic received versus any unlimited budget of PPC campaign (ie searchers are 2x more likely to click an organic search result than a paid advert.
3. Being in top 3 page 1 organic search results ensures a minimum of 10% click through traffic from the monthly searches entered in to google. (for example if there are 3000 searches every month for the term "wine merchants" you would expect to get a minimum of 300 visitors per month from SEO results.

Opposingly if you were on a ppc campaign you would expect 5% of that 3000 = 150 visitors. (assuming you were ad position number 1 with the highest paid per click value.

How to estimate cost of PPC

So for our example we will use the above example of wine merchants...
What we know:
1. PPC campaign will deliver 150 click per month
2. The average cost per click is estimated (from google adwords tool) to be £0.54

Therefore total cost for 150 targetted visitors to your website for the term wine merchants will cost you ==> 150 x £0.54 = £81.

How to estimate cost of SEO

Well this is actually how you value SEO. We know that for 150 visitors to your website you will need to pay £81 every month to Google.

But dont stop reading - there is more...

Ah ha we have a figure for SEO - for a better return on investment on SEO you would need to get 150 visitors per month for less than £81 per month.

But dont stop reading - there is more...

We know SEO will deliver a minimum of 2 x the amount of traffic so basic value of being in top 3 page 1 of google is actually £162 per month. (150 visitors = £81 but SEO delivers 300 visitors therefore 2 x £81 = £162).

Added value of SEO

This simplistic approach ignores the overwhelming advantages of SEO...
You also need to add a value to the following:
1. SEO is long term gains - you may not need to pay the sum every single month (unlike PPC which is a constant drain.
2. With SEO if you rank in top 3 for "wine merchants" you will also nearly always rank for other variations such as "wine merchants UK", "online wine merchants", "wine merchant" (singular).
3. The true number of targetted visitors to you website is therefore well over the 300 per month (10% of total monthly searches).

Also remember that with higher PPC values (cost per click) there will be a greater return on investment from SEO

So how much should you pay?

Well this is a number that you should really evaluate on a month by month basis. Both SEO and PPC deliver clear transparent returns on investment and full trackability for conversions.

As a guide we expect that you will pay anywhere between 3 and 5 times the cost of PPC for true SEO which obtains multiple rankings for multiple primary keyword variations.

In our example it is expected that you may pay a total value between £240 and £1000 for SEO on the term "Wine Merchants". To maintain top rankings for this keyword via SEO the cost will be significantly less.

Remember SEO for any keyword will always benefit your other related keywords and your website will rank higher in general