Sunday, April 24, 2011

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.

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

For e.g. if your ad is clicked 10 times and is displayed 50 times, then your Ad CTR= 10/50=20 %.
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

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.

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

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

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
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}
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
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.
11. Traffic required to break even = No. of goals required to break even /conversion rate of the website.
12. Cost  per Conversion = Total Marketing cost / No. Of conversions.
 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
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
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.
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.

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


  1. I Will Provide SEO Blog Comment Service . & niche relevant blog comment service we provide a quality service with 100% Buyer satisfaction and My team Believed in Quality work not Quantity Contact me Now 24/7.

  2. It’s really amazing that we can record what our visitors do on our site. Thanks for sharing this awesome guide. I’m happy that I came across with your site this article is on point,thanks again and have a great day. Keep update more information..
    SEO Company in Chennai