How to do ROI Analysis?

If your target is to boost brand visibility, traffic as well as profits, then Google AdWords is the best option for you. Return on investment analysis delivers metrics, graphs, and stats for all possibilities. Over recent years, Google marketing is the trend among marketers to make ROI. Unfortunately, return on investment analysis or ROI analysis has grown in difficulty as the targeting options and campaign types have struggling to meet the requirements of a business.

In AdWords, there are numerous features such as keywords, ad groups, campaigns, Google ads targeting and more which are tough to distinguish whether you are doing right or not. It can draw profits from marketing if you plan well. You should be strategic in your return on investment analysis and each advanced AdWords tactics for its optimal use. For this, you should know how Google ads ROI or return on investment analysis is calculated and measured. The following formulas show how important return on investment analysis actually is and what should you concentrate:

• Quality Score

Your quality score can make or break the success of your PPC (pay-per-click) advertising. Because, it is used to find how a keyword, landing page, etc. are significant to a user’s enquiry. Then, Google will discover if your ad is worthy of an impression on a search query and the amount for a click, etc. For getting a higher quality score, users should have a positive experience.

• Click Through Rate (CTR) 

A simple but extremely important calculation for setting Google ads bidding. CTR permits you to determine how many people are clicking on an ad in how many times. CTR is similarly one of the features that decide the quality score of your ads and eventually the cost you’ll pay for the clicks.

• Conversion Rate

This metric is useful for marketers to analyse which keywords have the best response rate. It is measured from clicks on your ad through a query or sales. Conversion rate is an important factor you must continuously be working to expand. The percentage of the clicks that generate conversions is called Click Conversion Rate.

• Dynamic Revenue Tracking

If you have an e-commerce website, you should ensure that you’re making the conversion value for shopping cart transactions in the store. This will make a conversion value for the products and get the ROI data straight from Google AdWords. You can integrate conversion tracking with e-commerce stores. For this, execute e-commerce tracking in Analytics and also have this imported into AdWords.

• Geographic Bid Variables

If bulk conversions happen in a specific region, boosting the bid variables in that geographic area increases the effect of ad groups. Enhancing geographic bid variables inside the search network campaigns is an operative strategy to expand campaign ROI. This feature delivers the marketer with extra control over bids depends on demand locations.

Google AdWords remarketing can also be one of the greatest tools for your online advertising to generate ROI. AdWords is the finest marketing tool that relies on a marketer’s skill to control technology in innovative and clever methods. If properly used, you can win the competition.