Anne-Marie’s business goal is to generate online sales of her handmade purses. Her AdWords costs are $100 per week and she wants to know if h

Anne-Marie’s business goal is to generate online sales of her handmade purses. Her AdWords costs are $100 per week and she wants to know if h

Anne-Marie’s business goal is to generate online sales of her handmade purses. Her AdWords costs are $100 per week and she wants to know if her advertising investment is paying off. What additional information do you need in order to calculate her return on investment (ROI)?

  1. Number of clicks on her ads and costs to produce her purses
  2. How many times her ads have been viewed and clicked on
  3. Number of clicks on her ads and revenue they generated
  4. Costs to produce her purses and revenue generated from her ads

The Correct answer is:

  • Costs to produce her purses and revenue generated from her ads

 

Explanation

ROI is the ratio of your net profit to your costs. It’s typically the most important measurement for an advertiser because it’s based on your specific advertising goals and shows the real effect your advertising efforts have on your business. The exact method you use to calculate ROI depends upon the goals of your campaign.

Read more here: https://support.google.com/adwords/answer/1722066?hl=en

Udit Khanna

Udit Khanna is a Digital Marketing Course professional at Expert Training Institute, an expert in Digital Marketing, Search Engine Optimization, Pay Per Click, Social Media, etc. who helps companies attract visitors, convert leads, and close customers. Previously, Udit worked as a marketing professional for various startups and tech companies. He graduated with B.Sc from IGNOU with a dual degree in Business Administration (Marketing & Finance).

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