Project Level Chart
The project-level revenue chart shows the total daily revenue value for all keywords you are tracking within a particular project.
In other words, the Revenue Chart is the organic traffic value for the domain associated with a project.
This is what we consider when calculating the value of a project:
- Search volume (SV) – the combined average number of users looking up all of your tracked keywords over a given time period in a particular location
- CPC – the total price you pay for each click on paid search results for all of your tracked keyword (expressed in USD)
- Traffic volume (%) – the average click-through rate for all of your tracked keywords adjusted for ranking position over a given time period
Keyword Level Chart
On the keyword level, we consider the same parameters but only for that particular keyword:
- Search volume – the average number of users looking up a targeted keyword over a given time period in a particular location
- CPC – the price you pay for one click on a paid search result for a targeted keyword (expressed in USD)
- Traffic volume (%) – the average click-through rate for a given keyword adjusted for ranking position during a particular day
So how do we calculate your project revenue?
Let’s say, the keyword “basketball” has a monthly search volume in the United States of 379K.
If you’re in position 1 for this keyword, you would get 67% of this search volume.
This is the percentage of organic clicks the keyword receives in position 1 over a one month period.
To calculate the Monthly Revenue (MR) this keyword brings, we would multiply the traffic volume with the cost per click (CPC).
The CPC of “basketball” is $0.90.
The formula for MR is: traffic volume x CPC
The traffic volume the keyword “basketball” receives in a month is 254K (67% of 379K).
So 254K x $0.90 = $228.600
This is the MR of “basketball” when ranked in position 1.
As the ranking drops, so does the traffic volume and the monthly revenue.
The Project Monthly Value you see on your project Dashboard is the combined MR of all the keywords you are tracking within that project.
If there are major discrepancies between the projected value and your actual income, this could signal that certain areas of your SEO efforts need improvement.
Keep in mind that these parameters can be highly volatile, which makes the Project Monthly Value subject to change.
As a general rule, the closer the Project Monthly Value is to your actual income, the more effective your SEO strategy is.
Notes on the Logic
Every keyword has a monthly volume, meaning the number of times that keyword is searched per month.
Let’s say the keyword “Best Website Builder” has 2000 searches per month. All SEOs are after the top position for their keywords because it is rewarded with the most clicks of the 2000 search volume.
And not just a little bit more, a dramatic amount more – 2 times as the 2nd position.
In fact, there have been extensive studies done that dig deep into understanding what % of the search volume each click gets.
Here’s a study done by Smart Insights:
How does this translate to revenue?
CPC or the cost per click is quite a literal expression – how much do advertisers pay for a particular click.
Back to the example of “Best Website Builder”:
These advertisers are paying $20 for each click. That means the organic results are just as valuable per click as the spots advertisers are bidding on.
|
Keyword |
Search Volume Monthly | Position | % of search volume by position | Cost Per Click |
Monthly Value Based on Keyword Position |
| Best Website Builder | 34,000 | 1 | 34.2% | $20 | $232,560 |
| 2 | 17.1% | $116,280 | |||
| 3 | 11.4% | $77,520 | |||
| 4 | 8.1% | $55,080 | |||
| 5 | 7.4% | $50,320 | |||
| 6 | 5.1% | $34,680 | |||
| 7 | 4.1% | $27,880 | |||
| 8 | 3.3% | $22,440 | |||
| 9 | 2.9% | $19,720 | |||
| 10 | 2.6% | $17,680 |
So as we can see here, the difference between ranking 1 for an entire month vs ranking 2 for the keyword “Best Website Builder” is over $100,000.
No wonder the top spot is so sought after.
SerpWatch offers you real-time values of your rankings based on how your position fluctuated over the month both for a single keyword and all the keywords that are in that project.
This keyword was generating some revenue but it fell so far in the rankings (to the 2nd or 3rd page) that the click-through rate went to 0% as no one really checks the 2nd or 3rd page of the rankings.
Without clicks unfortunately there is no revenue….so keep fighting your way to the coveted first page and the 1st position.