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SEO Services Spending Grows to Capture Online Traffic – Is it working?

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A recent study posited by Borrell Associates put digital marketing spending at $613 Billion for 2016 – and showcased an upward trajectory that is significant and trending upward. The report unpacks and discuss each category in more detail.

In particular, Borrell says that 87.5 percent of “online marketing support” reflected in their research is SEO-related spending. Based on the pace of growth that total SEO spending was just over $65 billion last year, and will grow to nearly $80 billion by 2020.

But will a companies Search Engine Optimization budget pay off?

It's important to examine the return on investment of SEO for a specific company's situation. For e-commerce stores the situation is a bit more cut and dry and the calculation looks like this – start with monthly traffic volume, multiply it by conversion Rate, and then multiply that by average order value. If the R.O.I. exceeds your profit margin significantly (usually by 3X or more what you're spending on SEO) one can safely say they're making a very solid investment. 

When it comes to lead generation there are a couple more elements to the equation – one needs to consider your closing ratio from leads generated as well. If a average client lifetime value is 12k, but only one out of every 10 leads becomes a customer – each lead is worth $1,200 on average.

In SEO – what a company makes, is more important than what they spend.

It's interesting when companies become obsessed with diminishing there costs on digital marketing when the average company spends 7-8% of revenue on their marketing efforts, and when they spend 3% they wonder why they're not growing. It's important to look at the 'opportunity cost' – what are companies losing out on by being cheap about key elements of their online presence. 

If Google is one half of the puzzle to where people are finding your services online, it's crucial to have a clear strategy around that – and plan for the future when more and more decisions are getting made online, whether it's a small product or a large B2B transaction.

Learn more about SEO Services with this video and in-depth question and answer guide:

Media Contacts:

person_outline  Full Name:Tim Brown
phone  Phone Number:17632215525
business_center  Company:Tim B Design
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