Smart SEO Formulas

1. Keyword CTR (Click through Rate) = No. of times your ad/search engine listing is clicked/ No. of times your keyword is searched.

For e.g. Let say your search listing on Google was clicked 2 times when the keyword ‘event management courses’ was searched 48 times. So CTR of the keyword ‘Event Management Courses’ =2/48= 4.17%
Note: A keyword’s CTR is a strong indicator of its relevance to the user and the overall success of the keyword.

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2. Ad CTR= No. of times an ad is clicked/No. of ad impressions.

For e.g. if your ad is clicked 20 times and is displayed 100 times, then your Ad CTR= 20/100=20 %

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3. Goal Value= Total revenue generated by a website in a given month/total no. of goals (conversions) achieved by the website in the month.

For e.g. Goal value

= £2,138.46/129 orders = £16.58
= £2,138.46/129 leads = £16.58
= £2,138.46/129 signups = £16.58
= £2,138.46/129 downloads= £16.58
= £2,138.46/129 page-views = £16.58

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4. Conversion Rate of a website= No. of goals (conversions) achieved in a given month/ Total no. of visitors in that month.

For e.g. Conversion Rate

= 129 orders/8773 visitors= 1.4%
=129 leads/8773 visitors= 1.4%
=129 signups/8773 visitors= 1.4%
=129 downloads/8773 visitors= 1.4%
=129 page-views/8773 visitors= 1.4%
Note: You can also determine the goal conversion rate through Google Analytics.

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5. Traffic required to achieve desired goals = No. of goals required to be achieved/conversion rate of the website

For e.g. Traffic Required
=500 orders/1.4% = 35714 visits/month
=500 leads/1.4% = 35714 visits/month
=500 sign-ups/1.4% = 35714 visits/month
=500 downloads/1.4% = 35714 visits/month
=500 page-views/1.4% = 35714 visits/month
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6. Anticipated Revenue through SEO efforts = No. of goals required to be achieved by SEO * Value of each goal

For e.g. Revenue generated= 12000 orders * £16.58 =£198960

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7. Immediate ROI (Return on Investment) = Anticipated Revenue through SEO efforts – Proposed cost of the SEO project

For e.g.

ROI = [500 orders*24 months *Value of each goal (£16.58)]- £36000 = £198960- £36000 = £162960

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8. Actual ROI =  Immediate ROI*12= £1,872,000
{client will continue to get seo benefits at least for the next one year even without any seo}

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9. How much client is expecting in return = total anticipated revenue from seo efforts / proposed cost of the whole seo project

For e.g. £198960- £36000 = 5.53

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10. No. of goals required to break even = Total Marketing Cost of the website/ Goal Value

Note: Break even is the point at which their is no profit, no loss.

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11. Traffic required to break even = No. of goals required to break even /conversion rate of the website.

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12. Cost per Conversion = Total Marketing cost / No. Of conversions.

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13. Revenue generated through Social Media = No. Of goals achieved through social media efforts * value of each goal

For e.g. Revenue generated through facebook = No. Of goals achieved through facebook * value of each goal

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14. Social Media ROI= Revenue generated through Social Media – (time you spent on social media * your salary per hour)

For e.g. Facebook ROI = Revenue generated through facebook – (time you spent on facebook * your salary per hour)

=50 * £16.58 – (34.12 hrs * £20/hr)
= 829 – 682.4 = £146.6

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15. Social Cost Per Conversion =  Total Marketing cost through social media / No. Of conversions achieved through social media

For e.g. Social Cost Per Conversion = (time spent on twitter * your salary per hour)/ no. of conversions through twitter.

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16, Bounce Rate of a web page = Number of bounces / Number of entrances

Bounces => Number of times visitors left the website from the landing page without browsing any further.

Entrances => Number of times visitors arrived on the website via the web page.

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17. Bounce Rate of a website = Total number of bounces on all the web pages/ Total number of entrances on all the web pages

Read more: http://seohimanshu.com/2010/07/01/some-smart-seo-formulas/