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Why advertisers need to quantify their PPC ROI and what are the steps in calculating your PPC return-of-investment?
Wiki User
∙ 11y ago
They need to, in order for them to know if they are indeed increasing their leads and sales, through effective conversions. Calculating the ROI of every PPC ad will give marketers the assurance that ads are working and generating profit for the business. The goal is always to maximize profit and reduce costs. Therefore, if PPC ROI is higher, that only goes to say that ads are generating a profit and giving back more than what is invested in.
In calculating ROI,
· Calculate first the Return on Ad Spend, or revenues less cost of advertisement over total cost.
· Next, calculate your Return on Investment.
· Lastly, calculate your profits based on two given metrics for PPC ads, which are impressions and clicks. Divide each over total cost of the ad.
Calculating PPC ROI is really essential for it's the best way to know if you ad campaign is working or not, and this way, you'll know which needs to be replaced with something that works better for you.
Wiki User
∙ 11y ago
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