Google Ads is an advertising service by Google for the businesses who want to display ads on Google and its advertising network. It enables businesses to set a budget for advertising and pay when people click the ads. This service majorly focuses on keywords.We can create relevant ads using keywords that people who search your Web using the Google search engine would trigger at your and will be shown to them.
In simple terms, ROI or Return over Investment means the returns you get the money you spend. Same is the case with Google Ads, which is measured in terms of the output you get for the money you invest in advertising. This is an important measurement to ensure you spend your hard-earned money in the right direction and to ensure that the advertising campaign is actually profitable for you.
ROI = (Revenue – Cost of goods sold) / Cost of goods sold
For example, let’s say you sold 5 pieces of a product with each piece costing you $100. Each piece was sold for $200, and you spend $200 in advertising. Therefore, the total cost of the products is $700. Hence, your ROI would be:
($1000-$700)/$700 = 42.85%
Which also means, you earned a profit of $42.85 on each product you sold.
Apparently, Google ROI is an important factor to calculate how much profit you have earned through your campaign. Since it varies from one campaign to another, in case you are running multiple campaigns, it also enables you to find the most profitable advertising campaign for you. Accordingly, you may plan to invest more money in a campaign that delivers you higher returns.
But the flip side of the coin is, ROI is dependent upon very many factors. It is always difficult to calculate exact profits. Unlike other profit calculation metrics, Google AdWords ROI doesn’t give you the precise idea of calculating your profits. Also, you need extra skills to make comprehensive calculations as Google AdWords shows you highly advanced conversion tracking system.
Need not to say that Google Advertising ROI is a measurement that gives you the power of spending your money in the right direction. Without it, you hardly get an idea of how your campaigns are performing; leave aside the power of making a wise decision. If you knew how to play around the conversion tracking algorithms, it becomes very convenient and easy for you to find the exact performance of your campaigns.
No one can deny the fact that Google AdWords ROI measurement is a powerful tool for business owners and webmasters. But there are other ways of calculating your profits other than looking into the conversion metrics. As a business owner, you spend your money in many other activities as well, which eventually add into the cost of your goods. Google AdWords ROI doesn’t give you the exact profit figures as it does not include other expenses.
Drive Digital, a renowned digital marketing company in India helps you calculate your exact returns over your investments through Google Advertising conversion metrics. We are experts in providing Google Advertising services, and our webmasters are skilled in analyzing the complicated conversion tracking systems. If you are looking for a company that assists you in gaining highest profits for your investments, Contact Us today. We are always ready to help you.