Understanding of ROI for Google Adwords


How much of the profit you have made up of your ads compared to what proportion you have spent on those Google AdWords ads. Come on investment (known as ROI) measures the quantitative relation of your profits to your advertising prices.

ROI is usually the foremost necessary activity for advertisers as a result of it shows the $64000 result that AdWords has on your business. Whereas it’s useful to grasp the amount of clicks and impressions you get, it’s even higher to grasp however your ads square measure conducive to the success of your business.

To help live your AdWords ROI, you’ll have to trace conversions, actions that you simply wish your customers to require on your web site when clicking your ad like procurement, sign-up, or transfer. Strive Conversion pursuits or Google Analytics; free tools to assist you track conversions in your account.

Here’s the way to estimate the ROI of your campaign: take the revenue that resulted from your ads, reckon your advertising prices, and then divide by your total advertising prices.

With Google Adwords, Yahoo Search Engine Marketing, and similar online PPC programs, you spend money to make more money. The money spend is called your cost/investment, and the money you make is your revenue.

ROI (Return on Investment) has a basic formula, and it looks pretty easy on the paper:

ROI= [(Revenue-Cost)/Cost]*100

So, if you spend $100 to sell a product for $200, your ROI is:

ROI= [($200-$100)/$100]*100 = 100%

Wow, 100% ROI, doesn’t it look GREAT???

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