Calculating ROI with Adwords
By calculating your ROI, you can determine how much money you have made by advertising with AdWords. Your ROI can help you decide how to spend your budget.
For example, if you find that a certain campaign is generating a higher ROI than others, you can apply more of your budget to the successful campaign and less to the ones that aren't performing as well.
You can also use the information to try improve the performance of the less successful campaigns.
What if you do NOT sell a product directly to the customer.
In this case you can use a an alternative ROI measurement called Cost Per Acquisition or CPA. CPA can be used to estimate values for your leads and page views. Acquisitions can be thought of as conversions. Conversions are actions your customers take that you think are valuable. They represent actions like completing a purchase, signing up to receive more information or simply seeing an online page.
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