Google Adwords Digital Sales Certification

You want to generate leads with your Google ads 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?

You want to generate leads with your Google ads 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
The correct answer is:
  • How much you’ve spent on the campaign compared to the value of leads generated
Explanation: 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. ROI is typically the most important measurement for advertisers because it shows the real effect that Google Ads 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.

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 Google Ads. Your total sales are $1200, and your Google Ads costs are $200. Your ROI is ($1200-($600+$200))/($600+$200), or 50%.

More read: https://support.google.com/google-ads/answer/14090

Ali Raza

Ali Raza is a Web Developer and Digital Marketing Consultant.

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