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
  • The number of clicks your ad received divided by the number of times it showed
  • The percentage of budget spent compared to how many forms were completed
  • You can’t calculate return on investment for campaigns that are focused on online leads

Right Answer:

  • How much you’ve spent on the campaign compared to the value of leads generated

Explanation:

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

Return on Investment

The topic is basic enough to take us back to our school days when we used to learn Profit and Loss in our Mathematics class. As the name of the title suggests, Return on Investment can be defined as the amount of profit that you have made in the whole transaction.

In the world of Digital Marketing, Return on Investment can be explained as the profit that you have made on your ads in comparison to the amount that you have spent on it beforehand.

In simple mathematical terms,

  • Return on Investment or ROI = (Revenue – Cost of goods sold) / Cost of goods sold

Let us imagine that there is a product for which you need $1000 to produce. You sold the same at $1500 per product. You sold 5 products in total with the help of your ads on Google.

  • The costs that you had to incur with Google Ads is $200.
  • Your total sales = 5 * $1500 = $7500
  • ROI = 7500 – ( 5*1000 + 200 ) / 5*1000 + 200 = 7500 – 5200 / 5200 = 44.23%

Hence, your Return on Investment would be 44.23%.

If you have any doubts about the question You Want to Generate Leads with Your Google Ads Campaign….leave us a comment.

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