The Basics of ROI

Hi there! Today I wanted to talk a little bit about the basics of ROI. To start things off, ROI stands for return on investment. When I talk about ROI, I'm referring to your investment in AdWords. A lot of businesses struggle to invest in advertising, because it is hard to tell how much money those advertisements actually bring in. AdWords has done a great job of tracking how many customers come to your website because of the ads you put out there. They even allow you to track how many clicks lead to sales, so you can easily determine your return on investment. The formula to calculate this is ((revenue - cost of goods sold)/ cost of goods sold). By tracking how much you made in sales and subtracting how much you paid for AdWords, you can divide that by your AdWord cost to find out how much money you're actually making per click. Just another handy way to improve your AdWords.