What is ROI?

hey guys please tell me about ROI in seo.

 

ROI means - "Returns on Investment"

 

ROI means Return of Investment. Pretty much it's self-explanatory. What you gain must be more than what you spent so you get a positive ROI.

 

Completely agree with you. The term ROI work with google adword like campaign.

 

Return of Investment.

 

I don't think it has anything to do with SEO in particular. You can calulate your Return on Investment on any sort of Investment. Means the same when applied to SEO as well.

 

If you have reached page 1 for a high traffic keywords and you paid $4K for SEO to do that, several months later you started getting a lot of consistent traffic and you have earned $10K from your ads/sponsors etc, than you have got a nice margin of $6K there, its a pretty solid ROI.

Zac

 

Return on Investment (ROI) is what every client wants from a search marketing agency. It’s an easy thing to calculate if you’re doing Pay-Per-Click (PPC) advertising. If your revenue is higher than your spend, PPC management fees and cost of goods, then your client is getting a return on their investment. Although it’s simple to figure out ROI for PPC, the same cannot be said for search engine optimization (SEO).

Search marketing agencies that provide SEO services have traditionally reported ROI in a variety of ways. The most common approach to SEO ROI has been search engine ranking. If a company can get a client to perform well in organic SERPs, often times focusing on a handful of short-tail keywords, then they’ve done their job. Unfortunately, that’s not exactly SEO ROI. Instead, it’s a trophy that may not be worth anything at all.

The fallacy of short-tail search terms is the assumption that it provides a return on investment. For example, if a company is spending $5,000/mo to an SEO agency to build up and maintain short-tail keyword phrases, that agency may report those SERPs as SEO ROI. Agencies have been training their clients to believe that highly ranked short-tail SERPs is ROI, when that couldn’t be further from the truth.

More often than not, clients already have some short-tail keyword phrases that perform very well in SERPs. They covet their short-tail SERPs and believe that by simply being number one or number three, their website will somehow magically profit from it. However, looking deeper into their analytics can sometimes reveal a much different story. Short-tail SERPs can suffer from being too broad. For example, a site may perform well for “blue widget” but it doesn’t necessarily mean that people who want to buy the widget will search with that short-tail term. Instead, qualified and targeted traffic may search for “best price on blue widget” more often than simply typing “blue widget” in their search query. If that’s the case, and if the website doesn’t perform well on those targeted long-tail keywords, the short-tail SERP becomes useless.

The same concept applies to referral traffic. A successful link building campaign may get a lot of high quality inbound links to the client’s site and may improve their short-tail SERPs. However, if those referrals aren’t driving targeted traffic and if they’re only propping up poor performing short-tail keywords, then is there really any ROI to report? The answer is probably no

 

Well it is return of investment but it has got nothing to do with seo , it can be applied to any thing related to money investing.

 

Nice copy-paste there mate.. and yup, ROI isn't only applied to SEO but everything that involves money.

 

ROI is return on investment.

 

It is called Return on Investment

 

ROI is the performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.

 

thanks everybody for keeping view here.

 

ROI: Return of Investment, I mean to say that How much you get in reward of you spent on promotion of your website through Organic way and paid way.

 

ROI= Return Of Investment, SEO ROI means suppose you expand some amount of money for SEO and you will get ROI+profit