ROI and Optimizing Ad Performance

At this point, you should have your website working, your campaign filled out, legal issues taken care of, Google Analytics done and Google Ads done. Like my other blog posts, we advise you visit the previous posts before moving on to the point. Now lets go!

This week we are talking about ROI and how to Optimize your ad performance. What is ROI?

R - return

O - on

I - investment

That is what ROI stands for. Basically, it is how well your company is handling it's costs compared to its profit. A high ROI means that your profit is higher than your costs. A low ROI means that your costs are too high or your profit are too low and the difference between the two is too close. ROI is especially useful in measuring the companies efficiency.

ROI = (revenue - costs of good sold) / costs of goods sold

We can measure our ROI with our Google Ads account. You will need to link your Google Ads conversions with your website builder by either coding it into the site itself or using Google Tag Manager or Google Analytics. You can choose whichever option works best for you, but make sure that you have set it up correctly. Tracking your conversions is important to see how well your business is doing. Examples include: tracking leads by consumers who completed the survey on your site, tracking consumers who purchase a product, tracking how many people view your site, etc. If you are an affiliate business, this may be harder for you to figure out. This link may be helpful - https://support.google.com/google-ads/answer/6095821

After we have completed this step, we can move on to optimizing our ads. Keep an eye on your clicks, impressions, CPR, and other numbers in Google Ads. Most importantly, make sure your cost per conversion, is not higher than your cost for producing or selling a product. If it is higher, you are losing money and it would be best to delete or replace the keyword altogether. Check all of your ad words. Delete, replace, or add any that would profit your ad better.

Before you start running your campaign: DOUBLE CHECK THAT YOU SET A PRICE GOAL. OTHERWISE YOU COULD OWE GOOGLE THOUSANDS OF DOLLARS!!! Than go ahead and start running your campaign! Good Luck!

#impactfullearnings #businessstarting #googleads #roi