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Show me a practical example of return on investment (ROI) for Adwords

Here is an example of your return on investment with Google Adwords:

(a) You set a budget to spend. For this example, we'll use $1,000 but the amount is totally up to you. You can start small if you'd like.

(b) You set a cost-per-click bid of $1 (this is the amount you are willing to pay for an potential customer). The amount is up to you but the higher the amount, the more prominent your ad will display. Your ranking also depends on your "quality score" which is a value that Google applies to your keywords and landing pages - but don't worry about that for this example, we'll help you out with obtaining a high quality score.

(c) Assuming you are targeted correctly and your keywords, ad text and landing page are structure correctly (we help you with this), you should receive 1000 clicks.

(d) Based on a conversion rate of 10%, you would average 100 conversions (ie. sales).

(e) If your average sales was worth $100, you have generated $10,000 of sales and your marketing/sales cost are 10%.

(f) ROI is your sales / your investment = 10,000 / 1,000 = 10. Expressed as a percentage, your ROI is 1000%.

There are some things to consider. Your conversion rate will depend on the type of product or service. It is also critical that your campaign be structured properly - specifically that your campaign is targetted correctly (location, language, budget), your ad text and keywords are optimal and your landing pages are effective. This is where we come in. We'll help you with all these steps to make sure your campaign obtains the best returns possible.

If you'd like to find out more about how to achieve an optimal ROI for your sales efforts, Contact us for a free, no obligation consultation and take advantage of a limited-time offer to get $100 in free advertising from Google.

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