Determine your budget
ROI - Return On Investment
One of the great strengths of online marketing is the ability to measure its effect. The results of this measurement may be used among other things for ROI calculation.
SEO companies, in general, like the ROI calculation because it gives a clear picture of the economic results we deliver to our customers. In short, ROI calculation is what helps find out what you get for your marketing budget, to be exact what profits you get from each investment.
For a better description of this process, let us look for example at Google AdWords, which allows you to set a specific limit to what you will pay for a click. When using Google AdWords, you should estimate what you "must" pay for the visitors you get. If you, for example, sell children clothes, you might be willing to pay three kroner per click and it's important to know if this price is reasonable.
If there is, for example, one sale per 100 clicks, it means that a buying customer costs 300 nominal units. If an average sale generated on the basis of a search on the phrase “children’s clothes” creates a turnover of 400 nominal units,- and margin is on 200, you will soon conclude that the economy on this keyword does not work, so the click price must be adjusted or the keyword should be deleted from the campaign.
We often experience that measurement on a website shows that a customer is paying for marketing on ten different sites, but in reality, only three of them deliver the total revenue. The other seven are therefore money down the drain, which might as well be invested in something more efficient or pulled out in wages.