You want to generate leads with your AdWords campaign by encouraging people to fill out an interest form on your website. What do you need to know to measure return on investment (ROI) for this campaign?
- How much you’ve spent on the campaign compared to the value of leads generated
- You can’t calculate return on investment for campaigns that are focused on online leads
- The percentage of budget spent compared to how many forms were completed
- The number of clicks your ad received divided by the number of times it showed
You want to generate leads with your AdWords campaign by encouraging people to fill out an interest form on your website. What do you need to know to measure return on investment (ROI) for this campaign
Whether you use AdWords to increase sales, generate leads or drive other valuable customer activity, it’s a good idea to measure your return on investment (ROI). Knowing your ROI helps you evaluate whether the money you’re spending on AdWords advertising is going to a good cause: healthy profits for your business.
How much profit you’ve made from your ads compared to how much you’ve spent on those ads. Return on investment (known as ROI) measures the ratio of your profits to your advertising costs.
Read more here: https://support.google.com/adwords/answer/14090?hl=en
How much profit you’ve made from your ads compared to how much you’ve spent on those ads.
To calculate ROI, take the revenue that resulted from your ads, subtract your overall costs, then divide by your overall costs: ROI = (Revenue – Cost of goods sold) / Cost of goods sold.
Example: Let’s say you have a product that costs $100 to produce, and sells for $200. You sell 6 of these products as a result of advertising them on AdWords. Your total sales are $1200, and your AdWords costs are $200. Your ROI is ($1200-($600+$200))/($600+$200), or 50%.
To help measure your AdWords ROI, you’ll need to track conversions, actions that you want your customers to take on your website after clicking your ad such as a purchase, sign-up, or download. Try conversion tracking or Google Analytics, free tools to help you track conversions in your account.
ROI is typically the most important measurement for advertisers because it shows the real effect that AdWords has on your business. While it’s helpful to know the number of clicks and impressions you get, it’s even better to know how your ads are contributing to the success of your business.