Key Metrics for Measuring SEO Impact and Business Value
1. Key Metrics For SEO
Impact Your Business
Brent Chaters
Sr. Manager
brent77@gmail.com
Twitter: @BrentChaters
Toronto | June 11–13
2. Toronto | June 11–13, 2012 | #sesto
Two words “TPS Reports”
@BrentChaters
3. Toronto | June 11–13, 2012 | #sesto
Ok Really …
• ROI / Revenue Impact
• Business Case / Business Objectives
• Market Share / Share of Voice
@BrentChaters
4. Toronto | June 11–13, 2012 | #sesto
JUSTIFY WHAT
YOU DO EVERY
DAY!
@BrentChaters
5. Toronto | June 11–13, 2012 | #sesto
Why Don’t Most SEO’s Speak Like
This?
Very simply It’s hard …
44% of companies have difficulty measuring
ROI for SEO
and
53% of SEOs are challenged by getting budget
allocations, making business cases or
obtaining executive buy-in
1Source: Econsultancy Digital Marketers Untied: State of Search Marketing Report 2011 in Association with SEMPO
@BrentChaters
6. Toronto | June 11–13, 2012 | #sesto
Why Don’t Most SEO’s Speak Like
This?
Hold on is it hard? Or do we have the wrong objectives?
of Respondents from
42% companies said their main
objective is to “drive traffic to
web site”
29% said “generate leads” Ok… I bet I know who has
challenges measuring ROI.
The Good news is that really 54%
26%
said “sell products, services or
content directly online” these people have a sound
of
business objective that makes
sense.
1Source: Econsultancy Digital Marketers Untied: State of Search Marketing Report 2011 in Association with SEMPO
@BrentChaters
7. Toronto | June 11–13, 2012 | #sesto
GIVE YOUR SEO
PROGRAM A
PURPOSE …
DON’T GET INTO
THE WEEDS
@BrentChaters
8. Toronto | June 11–13, 2012 | #sesto
Define Business Objectives
• Generate Leads
• Sell something
• Identify high valued action (White paper downloads, product
configurators, dealer locators)
• Oh wait your revenue model is ad based? Drive repeatable and
engaging traffic.
Then Measure it!
@BrentChaters
9. Toronto | June 11–13, 2012 | #sesto
How to Track ROI
ROI = ((revenue - cost) / cost) x 100
Or keep it simpler
• Report on # of Widgets sold MoM and YoY
• Report on # of Leads generate MoM and
YoY
• Report on # of Ads server from SEO leads
MoM and YoY
Prove your worth!
@BrentChaters
10. Toronto | June 11–13, 2012 | #sesto
How to Track Share of Voice /
Market Share
Share of Voice =
(# of words Ranking on / Total words) x 100
• Build your list of words that you both rank
and do not rank on.
• Capture which words you rank on
• Capture which words each competitor
ranks on
• Expressed as a percentage (eg 45% SOV)
• You will need a 3rd party tool for this.
– Authority Labs, AdGooRoo, SEOmoz, etx.
@BrentChaters
11. Toronto | June 11–13, 2012 | #sesto
Where to Get Inspiration From
Simple, ask for examples of
reports from other organizations.
Look at how and what they report
on and figure out what you can
map against that.
@BrentChaters
12. Toronto | June 11–13, 2012 | #sesto
SOME
EXAMPLES…
@BrentChaters
13. Toronto | June 11–13, 2012 | #sesto
Identifying Valuation
Based on PPC
Data
The Cost to Buy
this Traffic
Butterfly effect
value
@BrentChaters
14. Toronto | June 11–13, 2012 | #sesto
Top Line KPIs and ROI – Prove Your Worth!
INDEX
SEO Revenue Generated SEO Traffic To SEO Share of Keyword SEO Branded
Site Traffic Sales Voice World Conversion Vs. Non-
Conversion Rate Volume Size Rate Branded
Rate Ratio
$ % % % # % %
ROI
KPI Month
Year Over
Over
Current Month Year
Month
Change
Change
Sales Generated
SEO
PPC
Leads Generated
SEO
PPC
Search Conversion Rate
SEO
PPC
Estimated Offline Proxy Impact
SEO
PPC
@BrentChaters
15. Toronto | June 11–13, 2012 | #sesto
Awareness and Value – Measure The Big
Picture!
Awareness
KPI Year Over Month Over
Current Month
Year Change Month Change
Keyword Universe Size (# of Keywords
driving traffic)
SEO
PPC
Search Traffic Total
SEO
PPC
Share of Voice (measured in %)
SEO
PPC
Branded Vs. Non-Branded Ratio
SEO
PPC
Keyword Domination Index (keywords
with more than one page listed)
SEO
PPC
Top 5 Critical page For Optimization Total Traffic Change SEO Traffic Change SEO Leads Change
http://www.url.com/page1 YoY YoY YoY
MoM MoM MoM
@BrentChaters
16. Toronto | June 11–13, 2012 | #sesto
Opportunity and Projections – The Take Action
Data!
Opportunity
KPI Month
Year Over
Over
Current Month Year
Month
Change
Change
Keyword Overlap
keywords with highest Longtail Total Canadian Total total Exact Long Tail Total SEO
Opportunity Searches (exact) Canadian Stemming match implied value implied
Searches opportuniti implied per month value per
(Long tail) es Index value per month
month
Keyword #1
Keywords with Highest Growth Search Google
Opportunity Volume Google Google Google Rank Rank
Search Volume Phrase Rank Target Rank influence influence of
Exact Match Match target
Keyword #1
Pages With SEO Opportunity (high Traffic To Total SEO Traffic
Change Change Change
Traffic to Low Search Ratio) Search Ratio Traffic
http://www.url.com/page1 YoY YoY YoY
MoM MoM MoM
Top Page For Conversion SEO Traffic to Total SEO Traffic
Optimization (High Search Traffic Low Conversion Change Traffic Change Change
Conversion Rate) Ratio
http://www.url.com/page1 YoY YoY YoY
MoM MoM MoM
@BrentChaters
17. Toronto | June 11–13, 2012 | #sesto
Measuring Traffic Cannibalization
TH - TL
IAC =
PH - PL
IAC = Incremental Ad Clicks (expresses the incremental uplift in a percentage)
TH = Total Clicks High Spend Level
TL = Total Clicks Low Spend Level
PH = Paid Clicks High Spend Level
PL = Paid Clicks Low Spend Level
Help PPC spend more efficiently. Think of Search not a SILO.
http://www.gstatic.com/ads/research/en/2011_Search_Ads_Pause.pdf
@BrentChaters
18. Toronto | June 11–13, 2012 | #sesto
Take Action Now!
• Know what your business does, and how you can affect it.
• Identify how you will measure this
• Listen to how your boss talks (unless he’s another search guy, then don’t…)
@BrentChaters
19. Thank you
Brent Chaters Save 40% off print book & 50% off ebook
Sr. Manager Mastering Search Analytics at
brent77@gmail.com www.oreilly.com with code AUTHD
Twitter: @BrentChaters
Toronto | June 11–13
Hinweis der Redaktion
Next Slide: Project ROI
Next Slide: Project ROI
Next Slide: Project ROI
Use paid data to estimate and derive value as well.Paid data provides a couple interesting things. It tells you what the market feels a word is worth, higher costs for words tend to indicate more competition or greater value to attaining those customers. There’s a reason credit card type words are so expensive. A CPA may be $250 or more, but Credit Cards provide a long lifetime value.
There are a number of ways to measure your worth.Through immediate sales.Through generated leadsThrough a proxy value, which can be attained from surveys and 3rd party data, to estimate impact to offline or other sales.
Share of voice is a great metric, if used correctly. I like it for organic search, but not paid. It tells me if we are making headway against competitors as well which competitors are acting aggressively.Also understanding your keyword universe, what is the diversity like for the keywords driving traffic to your site? And think about segmenting this from branded and non-branded.Follow you 10 most important keywords. Measure how they perform, and what they are actually doing for you.More importantly track 5 critical pages to you, these should be your rainmakers, how are you improving them?
Remember IAC? Yeah, think about tracking that if you can, look at keyword overlap, how many organic words also show up in your paid search report? Those are the onese to measure IAC against.Know which keywords have the greatest variance and longtail opportunity, you can get this information from Google adwords, by looking at exact and phrase match data.Figure out which pages are driving high volume of SEO traffic that you may not be looking at, are they converting well? If no look at what keywords are driving people to those pages and optimize the user experience against their intent.
Lastly think about how your search campaigns can work together and save costs or spend more efficiently on paid search.Google released this study, it’s fascinating in that it looks at cannibalization, it shows that the old stand by of 1+1=3 is not always true. More importantly what this doesn’t cover is what the traffic actually does on your website. Does organic traffic convert better or paid for a particular page, think about how you can test for.