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Running AdWords campaign? You have to measure ROI (Return on Investment) every week to know whether the campaign is going successful or not. ROI can also be called Return on Ad Spend ‘ROAS’.
Is ROI “the” metric I should use to value my marketing investments? Yes, Of Course.
How to calculate ROI for product selling sites involved in AdWords?
ROI can be calculated as profit from sales, minus advertising costs, all divided by the cost of advertising. Let the profit as 1000USD after spending 500USD for advertisement costs. then ROI is, ((US$1000-US$500) divided by US$500) * 100. So, the ROI is 100%. If the value is multiplied by 100, we can call it in percentage.
How to calculate ROI for product selling sites involved in AdWords?
Calculating the ROI for lead generation website may require a different formula. You’ll have to estimate the values of each of leads.
For example, your total campaign costs US$1,000 per year and result in 100 leads. Ten of those leads become customers, and each customer provides an average revenue of US$120, so you total revenue through the campaign is 1200$, and your ROI is 20% ((US$1200 revenue minus US$1000 spent)/US$1000 advertising cost) x 100.
Use Conversion Data to Improve Your ROI
- Check how many conversions you got through AdWords campaign.
- Determine ROI of your campaigns
- Modify campaign performance using your conversion data
To implement Conversion tracker, Click Here
Have a successful campaign and increase your ROI!!
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