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If i am not selling how ROI is calculated ?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I am adversting for company that is not selling goods, So how my ROI is calculated ? As it is showing from the day i started my ads -100% before ads it was 0%. Please HELP.

 

Reply ASAP

 

Thanks

3 Expert replyverified_user

Re: If i am not selling how ROI is calculated ?

Top Contributor
# 2
Top Contributor

Hello gaurav; Welcome;


ROI= Return on Investment is a term taken from economics - one parameter commonly used to evaluate the profitability of projects.


For Adwords it's defined as :


(Total revenues from campaign sales -- Cost of campaigns) /cost of campaigns 

(Total sales minus costs divided by costs)

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: If i am not selling how ROI is calculated ?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
What if I am not selling and my revenue is Zero ?
Then what will I have to do increase my ROI ?

Re: If i am not selling how ROI is calculated ?

Participant ✭ ✭ ☆
# 4
Participant ✭ ✭ ☆

Hey Gaurav,

 

If you're not "selling" any goods or services - how do you earn money ?

 

You can read more about ROI in this link: http://support.google.com/adwords/bin/answer.py?hl=en&hlrm=iw&answer=14090

 

 

Good Luck,

 

Asaf

Re: If i am not selling how ROI is calculated ?

Top Contributor
# 5
Top Contributor

This is a good question;

In this case, ROI is meaningless. Just look at CTR


gaurav wrote:
What if I am not selling and my revenue is Zero ?
Then what will I have to do increase my ROI ?



Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: If i am not selling how ROI is calculated ?

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
Hi Asaf,

We earn clients and then provide them services. Our idea is that your website services should to know to people around the world. After that they can contact us and we will then provide services to them according to there needs.

Thanks

Re: If i am not selling how ROI is calculated ?

Participant ✭ ✭ ☆
# 7
Participant ✭ ✭ ☆

Then you need to calculate the ROI as Moshe has suggested but - manually:

 

(Revenue - Cost) / Cost = ROI

 

Good Luck,

 

Asaf

Re: If i am not selling how ROI is calculated ?

[ Edited ]
Badged Google Partner
# 8
Badged Google Partner

Here is where (for the sake of discussion only) I will disagree... What is the goal you are trying to achieve by advertising?

An investment, and the return on that investment is in the eye of the beholder. As guilty as I am of preaching ROA$ as the foundation for every action, ROAS, and ROI will have different meanings for different people.

 

For example, what's the last click attribution ROAS/ROI model for your child's college education? What's the lifetime customer value of that financial transaction? Beside the point perhaps, but acheiving the goal, should always be the primary concern.

 

Without giving away any specifics, I'm sure Moshe and asafpaz would be willing to try and help you achieve your goals, and increase ROAS/ROI, regardless of how the "value formula" works out for you, in your specific circumstances. Smiley Happy

 

 

Tom

Re: If i am not selling how ROI is calculated ?

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭
Hi Thomas,

You have asked that : What is the goal you are trying to achieve by advertising?

My goal for advertising is to let the people know about my services what we are providing and uniqueness of our services. We are not selling it online, we just want clients which can contact us and we can provide them services according to there needs.

Thanks

Re: If i am not selling how ROI is calculated ?

[ Edited ]
Top Contributor
# 10
Top Contributor

If your goal is exposure - i.e. Bringing your web site to the attention of others, economic parameters are meaningless. ROI, ROA ...etc...do not measure your goals : exposure . The factor that measure the effectiveness of your ad exposure is CTR.

 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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