{"id":1002,"date":"2016-05-06T16:43:05","date_gmt":"2016-05-06T16:43:05","guid":{"rendered":"http:\/\/www.certificationanswers.com\/?p=1002"},"modified":"2018-09-20T09:43:13","modified_gmt":"2018-09-20T09:43:13","slug":"your-clients-product-costs-us50-to-produce-and-it-sells-for-us150-shes-sold-10-units-and-spent-us700-on-her-adwords-campaign-how-would-you-calculate-her-return-on-investment-roi-to-help-her","status":"publish","type":"post","link":"https:\/\/www.certificationanswers.com\/en\/your-clients-product-costs-us50-to-produce-and-it-sells-for-us150-shes-sold-10-units-and-spent-us700-on-her-adwords-campaign-how-would-you-calculate-her-return-on-investment-roi-to-help-her\/","title":{"rendered":"Your client’s product costs US$50 to produce, and it sells for US$150. She’s sold 10 units and spent US$700 on her AdWords campaign. How would you calculate her return on investment (ROI) to help her understand the benefit of using AdWords?"},"content":{"rendered":"

 <\/p>\n

Your client’s product costs US$50 to produce, and it sells for US$150. She’s sold 10 units and spent US$700 on her AdWords campaign. How would you calculate her return on investment (ROI) to help her understand the benefit of using AdWords?<\/p>\n

 <\/p>\n

[US$1500 (revenue) – 10(number of products sold)]\/US$1200(cost + AdWords spend)<\/p>\n

US$1500 (revenue)\/US$1200(cost + AdWords spend)<\/strong><\/span><\/p>\n

[US$1500 (revenue) – US$1200(cost + AdWords spend)]\/US$1200(cost + AdWords spend)<\/p>\n

[US$1500 (revenue) – US$1500(cost)]\/US$700(AdWords spend<\/p>\n

 <\/p>\n

Explanation:<\/p>\n

ROI is the ratio of your net profit to your costs.\u00a0To calculate ROI, take the revenue that resulted from your ads, subtract your overall costs, then divide by your overall costs: ROI = (Revenue \u2013 Cost of goods sold) \/ Cost of goods sold.<\/p>\n

Read more here: https:\/\/support.google.com\/adwords\/answer\/14090?hl=en<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

  Your client’s product costs US$50 to produce, and it sells for US$150. She’s sold 10 units and spent US$700 on her AdWords campaign. 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