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A rapid explanation of how to measure and report PPC ROI. No time wasted; straight explanations and formulae. Includes a free download.
We know you're busy so there's a basic way to measure and report PPC ROI. In short, it's that formula, but the full explanation is below the title image.
We are concerned with bottom line impact, here.
As long as you can isolate the revenue generated by conversions from your PPC campaign, you can use this formula to quickly work out your PPC ROI percentage.
Remember to make sure your Revenue includes only conversions arising from the PPC campaign.
It's important to define the Cost item when reporting to your bosses too; is it the cost of the campaign solely in terms of Ad Spend? Or are you including product and costs too for a full investment cost?
How you report PPC ROI depends on how you define what forms the Cost in the formula.
It can be any of the following but be consistent and well defined when reporting;
Cost of the campaign itself will give you Return On Ad Spend.
Cost of both the campaign and the product will give you the full ROI (it depends on company policy whether you should include overheads).
Sometimes it's beneficial to look at your ROI in terms of impressions (number of times shown) and clicks (number of times users clicked through your ad).
This is useful for analysing which of your ads are working and which aren't. The design, copy and timing of future ads can be adjusted accordingly.
Alongside your paid campaigns, you can also boost your search engine ranking by following the advice in this ranking factors cheat sheet.
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