88% of Search Marketers Now Measure ROI of their campaigns, but only 36% believe that SEO provides higher ROI than search ads
According to iProspect’s latest study called “iProspect Search Marketer Measurement & Performance Study” 88% of Search Marketers now Measure ROI of their campaigns, a mere 9% jump from the previous year, nevertheless still a sign that marketers are increasingly being called upon to justify costs of their SEO campaigns.
Below is a quote from Robert Murray, president of iProspect:
"Going into this survey, we expected to see a significant increase in the percentage of search marketers now measuring the ROI of their campaigns, Especially given the increased level of search marketer sophistication that has evolved over the past two years. However, we were surprised that it only bumped up 9%. While the increase was less than expected, it still shows that more and more marketers are motivated to measure the ROI of their search programs. And given the substantial investment that search marketing requires, I can't imagine not measuring ROI. It's become mandatory as senior management is increasingly demanding that the cost be justified."
Reflecting the general quandary around ROI measurement and SEO, the study shows that “Difficulty in distinguishing ROI” has increased from 2005 – from 14% to 20% in 2007. Right now, the rate by which SEO capabilities is growing, does not seem to match the rate by which people are able to measure the effectivity of those capabilities. Yet, according to the same study, 86% of search marketers have their job performance tied to some measure of search metrics. Robert Murray further expounds on this result:
"Today, 50% of search marketers have their performance based on total sales, 49% percent are based on ROI, while 42% are based on ROAS. Those numbers tell an interesting and encouraging story. Namely, they speak to the increased sense of control and ownership felt by search marketers, and the increased sophistication of senior executives as it pertains to search." Murray continued, "What's more, what search marketer wouldn't rather have their performance evaluation based upon what their efforts actually netted - such as an additional $3 million in sales or 20% increase in ROAS -- than an additional 20,000 visitors a month."
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