Presented by Paul Taylor, CEO of Webmarketing123, this presentation walks you through how to calculate the annual cost associated with not ranking on page 1 of Google. In this B2B example, we use a study conducted with a Semiconductor Manufacturer.

1. The Cost of Not Ranking
on Page 1 of Google
Paul Taylor, CEO
Webmarketing123
Inbound Marketing Summit | June 13, 2012
@webmarketing123

2. Digital Marketing Survey
1 November 2011, 600+ Respondents (B2B & B2C)
SEO seen as the most potent driver of lead generation
2 Case Study
Applying KPIs & Analytics to Calculate the Cost of Not Ranking

3. Lead Generation is the #1 Objective
for Digital Marketers
2.80%
Build Online Community
5.00%
60-70% identify
Generate Site Traffic
17.40%
Lead Gen and
Sales as Primary
11.10%
Build Brand Awareness
16.90% Goals
15.30%
23.00%
Generate Sales
22.20%
39.90%
Generate Leads
46.40%
0% 20% 40% 60%
B2C B2B

4. SEO Makes the Biggest Impact
on Lead Generation
B2B B2C
18%
Social 25%
25% Media Social
PPC 34% Media
PPC
57% 41%
SEO SEO
According to both B2B and B2C Marketers.

5. But Social Media is Increasingly Important
68% of marketers say they have generated
leads from Facebook, LinkedIn, and Twitter.
Of those, 55% have
closed deals.
68%
55%

6. 4 Billion Searches on Google Every Day

7. 95% of Clicks Happen on
the 1st Page of Search Results
Source: 2010 BrandSoftech.com Study

8. 60% of Clicks are on Top 3 Results
Eye-tracking data from the Official Google Blog

9. B2B & B2C Digital Marketing Survey
1 November 2011, 600+ Respondents (B2B & B2C)
SEO seen as the most potent driver of lead generation
2 Case Study
Applying KPIs & Analytics to Calculate the Cost of Not Ranking

10. Case Study:
Semiconductor Manufacturer
The Cost of Not Ranking
on Page 1 of Google:
$32 million/year

11. Step-by-Step Calculation
of the Cost of Not Ranking on Page 1
of Google
• Keyword Selection
• CTR on SERP / New Visitors
• Website Conversion Rate
• Lead Qualified Lead
• Qualified Lead Sale
• Monthly Cost of Not Ranking
• Annualized Cost of Not Ranking

12. Keyword Selection:
Monthly traffic
volume, analytics
data, and
competitor rankings
are three of the
(many) factors
considered when
creating a keyword
list for SEO.
This list of keywords includes head terms like “mosfet”, which have high
volume, but are more competitive to place for. It also includes
keywords that have less traffic, but a higher likelihood of
conversion, such as “power transistors”.

13. Click-through
rates on page 1
of Google range
from 2%-35%
depending on
position.
All of these keywords will appear on the first page, but in different
positions. So let’s use 7% as a conservative estimate of your
potential CTR.

14. Next, we
calculate the
number of
website visits you
are losing each
month
1,024,700 monthly searches
multiplied by 7% average click through rate
=71,729 new website visitors

15. Now, we incorporate
your conversion data.
Google Analytics B2B
average is 3%.
What percentage of your current website visitors are converting
(purchase, download, demo, etc.)? Let’s use the Google Analytics
average of 3%.

16. Now, we incorporate
your conversion data.
71,729 visitors
multiplied by 3% average conversion rate
= 1,793 new leads

17. Now, we incorporate
your conversion data.
Lead to qualified lead
percentage varies
business to
business, but in our
example, we’ll use
15%.
What percentage of your leads are qualified? Let’s use 15%.

18. Now, we incorporate
your conversion data.
1,793 leads
Multiplied by 15% average qualification rate
= 269 new qualified leads

19. Now, we incorporate
your conversion data.
Qualified lead to
closed deal
percentage varies
business to
business, but in our
example, we’ll use
10%.
What percentage of your qualified leads become closed deals?
Let’s use 10%.

20. Now, we incorporate
your conversion data.
269 qualified leads
Multiplied by 10% average closed deal rate
= 27 new sales

21. Now, we incorporate
your conversion data.
For a semi-conductor
manufacturer, the
average value of a
new deal is
$100,000, so we’ll use
that here.
What is the average value of a closed deal from your website?
Let’s use $100,000.

22. Now, we calculate
the monthly cost of
not ranking on page 1
of Google.
27 new sales x average sale price of $100,000 = $2,700,000

23. Annual Cost of Not Ranking:
$2,700,000
monthly cost
multiplied by 12
months
= 32 million+/year

24. Key Takeaways
SEO is still the workhorse
― While Social Media is increasingly important, SEO is still the core driver of lead
generation.
SEO is measurable
― Marketers are increasingly expected to be metrics-driven, produce measurable
results, and shoulder P & L responsibilities.
SEO empowers you to make informed decisions
― By calculating the cost of not ranking, you can identify lost opportunities and capture
incremental revenue. SEO has the potential to make you a hero in the workplace.

25. Thank You
Paul Taylor, CEO
paul@webmarketing123.com
webmarketing123 facebook.com/webmarketing123 @webmarketing123