The Budget: The average lifetime value of a customer is $450. You know that the average purchase is $35. The business makes 20% profit on all sales. Most returning customers buy once a month. Your current monthly sales are $16,000 with a slight increase when seasons change. A steady increase in sales over six months to a 15% increase by month six would mean a total sales increase of $8,400 over the six months and a total lifetime value of around $30,900. Spending $3,000 on the six-month organic marketing campaign would see a return on investment of 106%. The advantage of organic marketing is that it keeps working even after the campaign has ended. This means that the ROI would actually be higher.
Look at the different search engines (sources) that drive traffic to your site to determine where you want to invest your resources. For example, if you're getting an overwhelming amount of visitors and revenue from a particular search engine, that's an obvious source of profitable traffic and an area in which you might want to make further investment; but you might also find another search engine that delivers only a few visitors, but ones who represent a very high Per Visit Value. In this latter case, you might want to increase your spend in that area to drive more of those high-value visitors to your site.
Website owners recognized the value of a high ranking and visibility in search engine results, creating an opportunity for both white hat and black hat SEO practitioners. According to industry analyst Danny Sullivan, the phrase "search engine optimization" probably came into use in 1997. Sullivan credits Bruce Clay as one of the first people to popularize the term. On May 2, 2007, Jason Gambert attempted to trademark the term SEO by convincing the Trademark Office in Arizona that SEO is a "process" involving manipulation of keywords and not a "marketing service."
Website saturation and popularity, or how much presence a website has on search engines, can be analyzed through the number of pages of the site that are indexed by search engines (saturation) and how many backlinks the site has (popularity). It requires pages to contain keywords people are looking for and ensure that they rank high enough in search engine rankings. Most search engines include some form of link popularity in their ranking algorithms. The following are major tools measuring various aspects of saturation and link popularity: Link Popularity, Top 10 Google Analysis, and Marketleap's Link Popularity and Search Engine Saturation.
Click through rate: Except for high purchase intent searches, users will click on paid search listings at a lower rate than organic search listings. Organic listings have more credibility with search engine users. In one UK study, published by Econsultancy, only 6% of clicks were the result of paid listings. In another study, it was 10%. The important thing to remember is that click through rate varies by purchase intent. Organic rankings will get more click through rates for “top of funnel” keyword search queries.
Many people know which search results are paid versus natural and often give precedence to natural search options. On the other hand, if your website shows up on later pages of the search results, you might have better luck using PPC to get seen. Because PPC costs money, you might consider using it for items that you sell, as opposed to promoting a free offer or your blog. With that said, many people have successfully used PPC marketing to promote a free lead magnet.
BrightEdge research supports that a blended approach is best for delivering high performing content. Not only will combining organic and paid search increase website traffic, but it will offer a bigger return on the investment. Take Retail, Technology and Hospitality industries, for example — organic and paid search combined make up more than two-thirds of their total revenue.