{"id":1008,"date":"2016-05-06T16:44:03","date_gmt":"2016-05-06T16:44:03","guid":{"rendered":"http:\/\/www.certificationanswers.com\/?p=1008"},"modified":"2017-02-10T13:56:15","modified_gmt":"2017-02-10T13:56:15","slug":"your-clients-product-costs-50-to-produce-and-it-sells-for-150-shes-sold-10-units-and-spent-700-on-her-adwords-campaign-how-would-you-calculate-her-return-on-investment-roi-to-he","status":"publish","type":"post","link":"https:\/\/www.certificationanswers.com\/en\/your-clients-product-costs-50-to-produce-and-it-sells-for-150-shes-sold-10-units-and-spent-700-on-her-adwords-campaign-how-would-you-calculate-her-return-on-investment-roi-to-he\/","title":{"rendered":"Your client\u2019s product costs \u00a350 to produce, and it sells for \u00a3150. She\u2019s sold 10 units and spent \u00a3700 on her AdWords campaign. How would you calculate her return on investment (ROI) to help her understand the benefit of using AdWords?"},"content":{"rendered":"

Your client\u2019s product costs \u00a350 to produce, and it sells for \u00a3150. She\u2019s sold 10 units and spent \u00a3700 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

[\u00a31500 (revenue) \u2013 \u00a31200 (cost + AdWords spend)] \/ \u00a31200 (cost + AdWords spend)<\/p>\n

[\u00a3150 (sales price) \u2013 \u00a31500 (cost)] \/ \u00a3700 (AdWords spend)<\/p>\n

\u00a31500 (revenue) \/ \u00a31200 (cost + AdWords spend)<\/strong><\/p>\n

[\u00a31500 (revenue) \u2013 10 (number of products sold)] \/ \u00a31200 (cost + AdWords spend)<\/p>\n

 <\/p>\n

Explanation<\/strong>:<\/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","protected":false},"excerpt":{"rendered":"

Your client\u2019s product costs \u00a350 to produce, and it sells for \u00a3150. She\u2019s sold 10 units and spent \u00a3700 on her AdWords campaign. How would you calculate her return on investment (ROI) to help her understand the benefit of using AdWords?   [\u00a31500 (revenue) \u2013 \u00a31200 (cost + AdWords spend)] \/ \u00a31200 (cost + AdWords […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[33],"tags":[],"class_list":{"0":"post-1008","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-google-ads-search-advertising-certification-assessment-answers","7":"entry"},"yoast_head":"\n\u25b7\u2764\ufe0fYour client\u2019s product costs \u00a350 to produce, and it sells for \u00a3150. 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