Return on Investment in Google Adwords

To track the performance of your account you need to check

1] Total number of Clicks

2] Click through rate

3] Total Number of sales and

4] ROI (much more useful for business)

ROI - This tells how much money you made for spending for ads. If the ROI is 100% your advertising money equals to return on investment if ROI Greater than 100% you are started making money 

CTR: Based on impression and clicks you can calculate Click Through Rate

Finding Which campaign do better –

It Is good to allocate more budget for well performing ads because higher conversation rate and low cost for conversion

Calculating CPC:

Calculating Conversion Rate:

ROI

Higher than “Return than Investment” I.e. More than 100% ROI, you can increase your bids and more budget allocation

Reference - http://www.youtube.com/watch?v=nRruI3De2Hk

Home -  http://www.youtube.com/user/GoogleBusiness/videos?flow=grid&view=0&sort=da