Wouldn't it be nice to know what kind of ROI you were going to get ahead of time from pay per click? Well now you can! Just enter the following metrics, hit calculate, and prepare to be enlightened.
You can also play with the values to see what increases and decreases in various metrics will do to your ROI.
Note, ROAS is called Value/Cost in AdWords. ROI subtracts the cost of advertising, but ROAS does not.
Definition of Terms:
- ROI = Return On Investment (Gross Profit/Cost)
- ROAS = Return On Ad Spend (Revenue/Cost)
- CPC = Cost Per Click
- Conversion Rate = % Of Visitors Who Buy
- Average Sale = Value Per Conversion = Revenue Per Conversion