Advertiser Education: What is Return on Investment?

Google, based on statistics conducted in US alone, is the most widely used search engine. This is why the search marketing and advertising industry highly trusts Google in increasing their return on investments and in gathering potential customers for their business. Unlike any other forms of media used in marketing, online marketing done in Google drives profit and enhanced return on investments.

Part of advertiser education is to get full knowledge of what return on investment is and what can it do in making your business profitable. For starters, return on investment means the ratio of the advertising costs relative to revenue that is generated after conversion of sales and leads are done.

Your return on investment identifies the value of your earnings derived from the costs of your ads and campaigns. There are conversion formulas and calculations in identifying your ROI. But the simplest conversation calculation could be through getting the revenue of your sales. Then, the revenue of your sales will deduct the costs of your advertising. After that, you divide the answer from your overall ad costs.

Since ROI is highly significant in any online marketing, you have to learn how to improve it. Google AdWords is proven to be efficient in drawing large number of potential customers. Thus, you have to execute the following:

-make every ad and campaign you create visible to the landing page of your website to get more clicks from your targeted market

-make sure that your website is navigable and is user-friendly to let your visitors stick around your site
-keyword selection and keyword placement should be relevant so that your keywords will be easily found on search engines

-be sure that you regularly monitor your ROI once you acquire an increased of ROI with the use of Google conversion tracking and your account statistics

Once everything is done and put on their right places, then you wouldn’t be surprised that you were able to increase your ROI and bring a great number of customers to your business.