Archive for category: How We Work

At Nexus Marketing, we pride ourselves on using data-driven strategies to inform our work with partners and clients.

One of our tools is the Keyword ROI Estimating Exercise. This tool enables us to evaluate the potential ROI of an investment in SEO through two lenses:

• Value of Organic Traffic by PPC Cost: This approach helps us quantify the value of organic traffic by comparing it to the equivalent cost of paid traffic. By analyzing the estimated cost-per-click (CPC) for specific keywords, we can calculate how much it would cost to acquire the same traffic through pay-per-click advertising. This allows us to determine the monetary value of organic traffic, demonstrating how much businesses save by ranking organically instead of relying solely on paid campaigns.

• Value of Organic Traffic by Estimated Monthly Revenue: This focuses on calculating the potential revenue generated by organic traffic. We calculate the expected monthly revenue from those visitors by estimating the number of visitors a keyword brings to the site and applying conversion rates (such as 3% visitors to leads and 20% leads to closed deals). This method offers a more direct insight into how keyword rankings translate into actual business outcomes, making it easier for clients to see the real-world financial impact of SEO efforts.

In this blog post, we’ll explain the methodology behind the document.

1. Organic CTR by SERP Position: Why Ranking Matters

When assessing the value of organic traffic, the position of a keyword on the search engine results page (SERP) plays a crucial role. Our analysis leverages industry-standard click-through rates (CTR) by position to determine how much traffic a given ranking will generate.

Here’s a breakdown of the average CTR by SERP position:

This data shows that the first position captures a significant portion of search traffic—28.5% of all clicks.

However, as rankings drop, the CTR declines sharply, with the 10th position receiving only 2.5% of clicks.

This steep drop-off emphasizes the importance of securing top rankings for your keywords. By understanding and applying these CTR metrics, we can estimate the potential traffic volume from organic search based on a keyword’s position, allowing us to calculate the expected value of that traffic for our clients.

2. Understanding Current Rankings

We analyze current keyword rankings, a critical step in the Keyword ROI Estimation Exercise. SEMRush provides real-time data on where a client’s website ranks for specific keywords, including metrics like search volume, keyword difficulty, and competitive insights.

Why Are Current Rankings Important?

Current rankings are a key performance indicator for any SEO strategy. They give us a clear picture of a website’s visibility in search engines and help us identify which keywords drive traffic and which need further optimization.

By consistently monitoring rankings, we can measure the effectiveness of our SEO efforts and make data-driven decisions to improve keyword positioning.

Ranking data also helps us prioritize our SEO initiatives.

For example, a keyword ranked in the top 3 positions is likely generating significant traffic already, but even minor improvements in those rankings can lead to substantial traffic gains. Conversely, keywords ranked on the second or third page have room for significant growth, and targeting these can unlock new traffic streams.

Having a business’ current rankings is the foundation of our ROI estimate.

Step 3: Initial Keyword Research and Preliminary Content Strategy

The third step in our process involves conducting initial keyword research to identify potential topics tailored to your business.

Using tools like SEMRush and insights from our initial discussions, we analyze keywords and group them into relevant keyword clusters.

These clusters represent groups of related terms with common themes or search intent.

Once we have these keyword clusters, we map them to potential content opportunities.

By organizing the clusters into strategic cornerstone content ideas, we can create or optimize pages that have the potential to rank for multiple keywords at once.

Step 4: Tiering Content Based on Engagement Levels and Traffic Value

In Step 4, we prioritize and tier the potential cornerstone content ideas by evaluating two key factors: traffic value and the speed of execution. We determine the traffic value by analyzing the estimated CPC (cost-per-click) for the keywords associated with each content idea. This helps us understand the monetary value of ranking organically for these keywords compared to the cost of driving the same traffic through paid advertising.

Next, we assess how quickly we can take advantage of the opportunity based on the current state of your website and existing content. With this information, we assign each cornerstone content idea to one of three tiers:

• Tier 1: High-value, high-priority content with the most significant potential for immediate traffic and business impact. These topics typically align with high CPC keywords and can be executed quickly.
• Tier 2: Mid-level opportunities that provide solid traffic potential but may take more time to produce or optimize. These are essential pieces of content that will drive value over the medium term.
• Tier 3: Long-term opportunities that are a lower priority but still valuable. These content ideas usually target lower CPC keywords or keywords with more gradual growth potential and are addressed in later stages of the strategy.

By assigning these tiers, we ensure that our efforts are focused on maximizing ROI in a structured, strategic way. It also clarifies which keyword clusters will be tackled first, second, and third, allowing for a phased approach that delivers results at each engagement stage.

Step 5: Calculating Current and Future Traffic Value by Strategy Tier

In Step 5, we quantify your website traffic’s current and potential future value by evaluating current state traffic and future traffic estimates for each strategy tier.

We begin by calculating the current traffic value based on existing organic traffic and its estimated CPC value.

This allows us to understand how much it would cost to acquire this traffic via paid search, giving us a baseline to measure the effectiveness of your current SEO efforts.

Next, we project future traffic estimates by strategy tier.

Using data from keyword rankings, CTR benchmarks, and search volume, we forecast the increase in traffic that can be expected after implementing content optimizations at each tier.

For each tier, we calculate the potential CPC savings by estimating the traffic’s worth if acquired through paid advertising instead of organic search.

This step helps quantify the ROI potential of your SEO strategy by clearly showing the value of improved rankings across different content tiers.

By comparing the current state traffic to the estimated future traffic, we can demonstrate the financial impact of moving forward with a well-defined content strategy, helping you prioritize investment based on expected returns.

Step 5: Estimating Revenue Based on Conversion Rates and Deal Value

In Step 5, we move beyond traffic estimates and calculate the estimated revenue that your SEO strategy can generate.

This is done by factoring in your business’s average deal value, visitor-to-lead conversion rate, and lead-to-close rate.

If you have this data available, we use your actual numbers to provide a precise estimate. However, if this information isn’t available, we rely on industry benchmarks to guide our estimates.

For instance, according to HubSpot’s sales statistics, the average sales close rate was 29% in 2023.

When working with our clients, we see 10 – 50% sales conversion rates based on the solution and industry. Based on three years of data across 50 clients, the average among clients serving a mission-driven sector is 20%, so we’ll use that baseline without the prospect having their own data.

Additionally, data from Geckoboard suggests that the visitor-to-lead conversion rate for B2B websites typically falls between 2.23% and 4.31%.

When working with our clients, we see 1 – 5% visitor-to-lead conversion rates based on the solution, industry, and what a lead is.

Based on three years of data across 50 clients, the average among clients serving a mission-driven sector is clients is 3%, so we’ll use that baseline without the prospect having their own data.

We can calculate potential revenue outcomes for your business by applying these benchmarks.

Here’s how it works:

1. Estimate the number of leads based on your expected web traffic and your visitor-to-lead conversion rate.
2. Estimate the number of closed deals by applying the lead-to-close rate to your total leads.
3. Calculate the total revenue by multiplying your average deal value by the number of closed deals.

This approach allows us to create a clear picture of the financial impact of your SEO strategy.

Whether using your data or industry benchmarks, we can project the revenue potential for each tier of your content strategy, demonstrating the direct business value of optimizing your site for organic search.

Step 6: Finalize and Summarize Results

In the final step, we present the data and insights gathered throughout the keyword ROI estimation process in a clear, visual format, typically in a slide deck.

The slides summarize the key findings, including traffic value estimates, tiered content strategies, projected ROI, and the financial impact of your SEO efforts.

Our goal is to offer a comprehensive strategy overview focusing on measurable outcomes. Each slide highlights critical data points like:

• Projected monthly traffic increases for each engagement level (overview, light, recommended, and accelerated).
• The value of organic traffic is based on PPC cost, helping you visualize the cost savings from ranking organically versus paid search.
• Projected ROI, detailing the estimated increase in revenue based on your conversion rates, deal values, and traffic growth across the different content strategy tiers.

The slide deck serves as the final product of our analysis, ensuring that you have a clear and actionable plan for leveraging SEO to boost your traffic, generate leads, and increase revenue.

It also allows you to make informed decisions about future investments in your SEO strategy by showcasing the value and expected returns over the next 12 to 24 months.

In order to ensure effective execution and streamlined communication across the two teams, we typically implement the following team structure for our engagements.

For the Client, these roles can be executed by the same person.

Nexus Marketing

Account Manager

• Day-to-day point of contact for the Client
• Responsible for: identifying highest value keyword opportunities, developing and overseeing a content and authority building strategy that will drive increase leads to the Client, ongoing project planning, and management of project resources

Copywriter

• Responsible for: conceptualizing, writing, and editing all SEO-optimized content to rank for Client’s highest priority keywords, developing high-quality content for other marketing collateral like email campaigns and downloadable resources

Content Publishing Coordinator

• Responsible for: all off-site outreach and coordination for authority-building and cross-marketing activities, cultivating and coordinating panel and webinar speaking opportunities

Technical SEO Specialist

• Responsible for: identifying, prioritizing, and implementing technical improvements on the Client website that impact rankings performance

Graphic Designer

• Responsible for: all graphic design and video production for Client’s on-site content, off-site partner blog posts, and downloadable resources pursuant to our engagement

Client

Project Sponsor, responsible for:

• Overseeing the engagement from a leadership perspective
• Leadership-level communication and reporting
• Budgeting and management of top-level scope of the project

Project Lead, responsible for:

• Assisting Nexus with disseminating engagement strategy and ensuring implementation

Content Review Lead, responsible for:

• Providing timely feedback on content developed by Nexus, typically within a period of 2 business days
• Providing feedback that balances brand considerations and SEO requirements, understanding that the faster content is published, the quicker we’ll see an ROI

When working with Nexus Marketing, one of the most crucial aspects clients are curious about is our reporting process.

How do we track and communicate progress in traffic, keyword rankings, and lead generation? Let’s delve into this.

Live Google Data Studio Dashboard

Shortly after you kick off your engagement with Nexus, you’ll gain access to a live, interactive dashboard on Google Data Studio.

This tool is your window into real-time inbound marketing performance, keyword, and conversion insights, which we’ll review together during our monthly check-ins.

This dashboard, while standardized, is tailored for each client to cater to their unique needs.

Executive Summary: A Clear Snapshot

The dashboard’s homepage features your brand’s logo and an executive summary.

This summary is crafted to be concise yet comprehensive, highlighting key takeaways, current objectives, and notable data points.

It’s designed for easy sharing with your executive team or investors, simplifying the task of communicating high-level insights.

Year-Over-Year Organic Traffic Analysis

Understanding the ebb and flow of your organic traffic is vital.

Our dashboard presents this in various formats – a succinct summary, monthly breakdowns, and detailed analysis by landing page.

This section reveals opportunities and challenges, guiding our strategy for future growth.

Organic Conversions: The Heart of ROI

Arguably the most critical part of our dashboard is the organic conversions analysis.

We look at conversions by type, over time, and by landing page.

This multifaceted view is crucial for identifying which strategies are driving real business results and where to focus our efforts.

Keyword Position Tracking: Staying on Top

Our dashboard integrates with SEMrush campaigns to provide a detailed view of your keyword campaign’s performance.

You’ll see how keywords fluctuate over time, their current positions, and their potential cost impact.

This continuous monitoring is key to adapting and refining our SEO strategies.

Channel Comparison: Understanding the Bigger Picture

Digital marketing is not just about SEO. We compare SEO performance with other channels driving traffic and conversions to your site.

This holistic view helps contextualize SEO within your broader digital marketing ecosystem.

Organic Traffic and Conversion Performance Over Time

Finally, we map out organic traffic against conversions over time.

This longitudinal view helps us gauge the effectiveness of our strategies in not just attracting visitors but also converting them into leads or customers.

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Concluding Thoughts

At Nexus Marketing, our reporting isn’t just about numbers; it’s about insights, strategy, and continuous improvement. Our comprehensive reporting structure is designed to keep you informed, engaged, and ahead in your digital marketing journey.