This article discusses the complexities of SEO funding within organizations, particularly as they navigate the emergence of Generative Engine Optimization (GEO).
Key Points:
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Perceived Value of SEO:
- Organizations often view SEO as a customer acquisition expense.
- Funding is largely influenced by perceived returns; newer concepts like GEO can overshadow traditional SEO work that supports similar outcomes.
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Changing Environment:
- With AI changing how consumers discover brands, a re-evaluation of SEO funding is necessary.
- Simply creating separate budgets for different optimizations doesn’t address the root problems of SEO investment.
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Financial Justification:
- Traditional models link SEO directly to revenue generation, but this doesn’t capture the full scope of benefits, which also includes protecting existing revenue and maintaining operational consistency.
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Differentiated Funding Needs:
- Investments should be categorized based on their economic purpose (e.g., generating revenue, protecting revenue, maintaining capabilities).
- The goal is to present a more diversified portfolio of investments rather than relying on a fixed SEO budget.
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Opportunity Cost Considerations:
- Investments must be weighed against potential alternatives. If an SEO expenditure has diminished returns, it may not justify continued funding.
- Decisions should be based on a clear understanding of the business’s strategic goals, risks, and available options.
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Clear Business Objectives:
- Any funding proposal should start with clearly defined business needs and objectives, explaining why the investment is necessary and detailing the expected outcomes.
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Holistic Measurement:
- Success metrics should correspond to the specific purpose of the investment, whether it’s traffic, revenue protection, or operational improvement.
Conclusion:
As organizations embrace GEO, they must rethink how they assess and allocate funding for SEO initiatives, ensuring that investments align with broader business purposes rather than merely reflecting departmental classifications. This approach not only clarifies the value of the work being funded but also enhances accountability and allows for more strategic decision-making.
