SEO ROI is more than just revenue

An SEO effort could be very unprofitable from a revenue standpoint but still beneficial for the company.

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Too many SEO efforts have no KPIs other than rankings, and if you read my newsletter regularly, you know how often I point out that rankings don’t pay bills. An ideal SEO KPI should be revenue (or something close to it) because if SEO is an acquisition effort, and it is, it should be measured by the acquisition it does.

But that’s not the only way to benefit from SEO. An SEO effort could be very unprofitable from a revenue standpoint but still beneficial for the company.

Revenue metrics are undoubtedly important, but they only scratch the surface. I don’t want to undermine the idea that revenue returns should measure SEO, but I want to consider a different perspective for businesses that can afford it. Let me explain.

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The long game of SEO

SEO is a long-term effort, and its impact extends beyond immediate monetary gains. It shapes enterprise value, influences fundraising potential, and builds brand awareness in often intangible but undeniably powerful ways.

A narrow focus on financial ROI can be shortsighted, especially with SEO. Unlike paid ads, which deliver quick results, SEO builds momentum over time. Its effects compound, often yielding exponential returns only months or even years later.

But those returns don’t always show up in a revenue report. Some clients I worked with terminated their SEO efforts too soon because “it wasn’t working,” only to see that those efforts drove meaningful results for their business years later. Those early efforts built the foundation for today’s returns, but there was no way to measure them.

As another example, ranking highly for informational queries might not lead to sales today, but it positions your brand as a trusted authority, laying the groundwork for future conversions - even offline conversions. This is especially pertinent in an AI-first world where a mention in a result might not even have a link back to the website.

Enterprise value

One of the most underrated benefits of SEO is its contribution to enterprise value. Enterprise value isn’t just about current financial performance; it measures a company’s total worth, including its future potential. This is a critical metric for businesses looking to attract investors or position themselves for acquisition, and SEO can play a pivotal role in enhancing it.

Organic traffic, driven by SEO, is sustainable and cost-effective. Unlike paid channels, which require constant investment, organic traffic grows over time as your site gains authority. This creates predictable revenue streams, which are highly attractive to investors.

A strong SEO presence also acts as a competitive moat, making it harder for rivals to gain visibility and market share. When that moat creates a category, it becomes tough for the leader to be unseated even if other sites build “better” SEO.

Fundraising

For startups and growing businesses, fundraising is often a crucial moment. Whether you pitch to venture investors, or a bank, your ability to attract funding hinges on how compelling your business case is. SEO can strengthen that case.

Investors might not be as sophisticated in understanding keyword rankings as your average digital marketer and could be more impressed by vanity metrics than they should be. That #1 spot on Bing? It might not drive traffic, but it could be a good feature in a pitch deck. Ranking for that multi-phrase term, which is the primary keyword in a SaaS category, could be a lot more useful on a pitch deck than it is in an attribution model.

Those paid links that don’t increase your SEO visibility could still be great logos to include on the homepage as media links.

Note, I am not at all advocating for using SEO subterfuge, instead, my point is that in many cases, investors expect to see these vanity metrics and overweight them in their investment models. Ignoring this aspect of SEO will cause more harm than good.

Internal political capital

It’s not just investors that are impressed with these SEO results. I have met with many company executives who are thoroughly impressed by these vanity metrics that add no business value. In many of my consulting engagements, I work with the team to build strategies that address their leadership vanity targets and build sustainable Product-Led SEO. Satisfying the requirements of leadership unlocks the budgets needed for the more significant efforts, and it’s easier to meet those goals than to convince them of their uselessness.

While this sort of SEO effort should not justify the massive investment, it is one area where it is worthwhile to focus on even if it’s not ROI positive. For the SEO reader of my newsletter, you know how easy it is to create that one long-tail page with a single internal link, and voila, the executive goal is met.

Brand awareness

Then there’s brand awareness, the intangible yet invaluable benefit of SEO. It’s hard to measure, but it’s one of a business's most important assets. A strong brand drives customer loyalty, commands premium pricing, and creates an emotional connection with your audience. SEO plays a crucial role in building and amplifying that awareness.

SEO is about visibility NOT rankings. The more visible your brand is in search results, the more likely it will be recognized and remembered. This increased visibility can lead to a “halo effect,” where your brand becomes top-of-mind for consumers, even if they don’t immediately convert. It’s not just about driving traffic; it’s about fostering a positive perception of your brand. This is why people might click the results on the bottom of the page rather than whatever is ranking #1. They gravitate to the brand.

Bigger picture

SEO is a marketing channel, and like any marketing channel, the goal should be new customers, but don’t neglect the bigger picture.

The challenge with metrics like enterprise value, fundraising potential, internal capital, and brand awareness is that they’re often intangible. They don’t appear in your analytics dashboard and are hard to quantify. But that doesn’t make them any less critical. These broader benefits of SEO often set successful businesses apart from their competitors. By focusing solely on financial ROI, you risk missing the bigger picture.

So, the next time you evaluate your SEO efforts, don’t just think, “How much money did this make?” instead, think, “How much value did this create?”

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