AdWords is now Google Ads. Our new name reflects the full range of advertising options we offer across Search, Display, YouTube, and more. Learn more

Ads
2.4K members online now
2.4K members online now
Get started with Google Ads - learn the basics to get set up for success
Guide Me
star_border
Reply

Marketing: Conversion Rate and ROI

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

I am looking for data on ROI% through various marketing mediums. For example, if you post a static image advertisement on a website, how many viewers click the image and end up purchasing the product? What is the ROI (or conversion rate) if you post a video advertisement instead?

 

I simply need the average ROI from Google Analytics. Not for my own company -- just the market average.

Could anyone please guide me in the right direction to finding this information?

Thanks,

Adi

2 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Adi A
April 2016

Re: Marketing: Conversion Rate and ROI

Top Contributor
# 3
Top Contributor
ROI is calculated as Trevor described above. However, Adi seems interested in industry ROI averages of various advertising channels.

While it would be great for new advertisers to find such benchmarks, I do highly doubt they could. The main reason of why I am thinking so is that for the calculation of your ROI Google should be knowledgeable of the profit you make by a conversion. Though many savvy advertises do specify a conversion value within their AdWords account, that's just a minority and there is no guarantee for Google that the values are correct.

You may of course come across, by chance, a good market research report on the net that might be based on a large sample, which is probably payable. Else you should rely on hearsay.

View solution in original post

Re: Marketing: Conversion Rate and ROI

Top Contributor
# 2
Top Contributor
Hi Adi,

Revenue - Cost of your product sold/ Cost of your product sold
Example let's say you make a item that costs you 1000$ then sell it for 2000$. Your Video sells 6 items which came from you campaign that cost you 2000$, so your total cost is 8000$ and your total sales is $12000. Let's say your . Your ROI is:

$12000 - $8000 / $8000

= $4000 / $8000

= 50% so your ROI would end up being 50% and in this case would be positive

Marked as Best Answer.
Solution
Accepted by topic author Adi A
April 2016

Re: Marketing: Conversion Rate and ROI

Top Contributor
# 3
Top Contributor
ROI is calculated as Trevor described above. However, Adi seems interested in industry ROI averages of various advertising channels.

While it would be great for new advertisers to find such benchmarks, I do highly doubt they could. The main reason of why I am thinking so is that for the calculation of your ROI Google should be knowledgeable of the profit you make by a conversion. Though many savvy advertises do specify a conversion value within their AdWords account, that's just a minority and there is no guarantee for Google that the values are correct.

You may of course come across, by chance, a good market research report on the net that might be based on a large sample, which is probably payable. Else you should rely on hearsay.