In comparison, when you consider the keyword phrase “health insurance Atlanta” that likely garners over $3.00 a click, so we know advertisers place a high value on this keyword phrase because the cost per click has been bid up to $3.00.
In search engine marketing (SEM), we use cost per click, the competitive nature of the keyword, and the keyword’s search volume to determine if that particular keyword is worth pursuing. If a keyword maintains a high keyword difficulty score, it could take some time to rank high for that keyword. We want to pursue a mix of keywords that are easy to rank for as well as the higher value keywords that can take a little more time to rank your business and your website for. In this case, lets stick with “Los Angeles homes for rent.”
Based on the total searches of 27,100 a month, a click through rate of 10%, which is the total number of people who click to your site when you are ranked #3 on Google, a phone call rate of 1%, a close rate of 5%, and a customer value of $5,000, this keyword could produce $81,000 a year in revenue for your business. Allow me to explain this phenomena in detail.
If 27,000 people are searching for something via this keyword, which we can assume are consumers searching for homes to rent in Los Angeles, and your companys’ website ranks #3 in Google for that keyword, you can expect to attract 2,700 visitors to your website, 27 phone calls inquiring about your services or homes, and roughly 1 to 2 potential clients per month. Based on a customer value of $5,000, which is the potential revenue for each client over 1 year, the potential revenues total over $81,000.
Keep in mind this is for just one keyword. Hundreds and even thousands of keywords exist for you to explore, analyze, and market your business.
How Search Engine Marketing Can Impact Your Business
Search engine marketers cannot guarantee the $81,000 revenue potential, however this number provides clear insight into how search engine marketing can significantly impact on your brand, ability to attract potential clients, and business growth.
If you have the flexibility in your marketing budget to expand your presence on the web, I encourage you invest and start allocating a portion of your marketing budget to search engine marketing.
The beauty of search engine marketing is that it’s targeted, measurable, and lower in cost compared to other forms of marketing.
Before you get started, speak with a good search engine marketing specialist in order to understand the competitive landscape of your market, the current position of your business via the internet, and the revenue opportunities that truly exist.
Justin Croxton is a founder and managing partner at Que Commerce, a digital marketing consulting firm. Justin helps small businesses leverage digital opportunities to find more customers, implement search engine optimization, and benefit from pay per click advertising.
© YFS Magazine. All Rights Reserved. Copying prohibited. All material is protected by U.S. and international copyright laws. Unauthorized reproduction or distribution of this material is prohibited. Sharing of this material under Attribution-NonCommercial-NoDerivatives 4.0 International terms, listed here, is permitted.