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what is the expected return on investment

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭
 

Re: what is the expected return on investment

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆
Hi Fash,

Could you please elaborate more about your question. If you are looking for measuring ROI then the following help article can help you.

https://support.google.com/adwords/answer/1722066?hl=en

Re: what is the expected return on investment

Badged Google Partner
# 3
Badged Google Partner
Fash,

I am going to answer your question from a Business perspective.

Your ROI or Return on investment is going to be determined by your own personal business goals.

If you are using an ecommerce platform it is easier to measure your ROI, based on I spent X and my shopping cart produced Y.

Where ROI gets tricky, is when there is no true value placed on a conversion, say from a Lead generated form or phone call. You would apply a value based upon how well you convert your leads into sales. Also the individual sales from a service industry may vary. Service 1 is X service 2 is y.

Also are you evaluating a new lead or customer, from a lifetime of customer value ( based on potential future sales) or just from a one off Sales revenue.

One thing that many businesses fail to recognize in their ROI calculations are the true costs related to not only the product, but labor facility, warehouse, cost of good itself, advertisement etc.

Typically speaking you would at bare minimum want to receive at least 2 back for every 1 spent. But that is truly determined by the value you give to each customer, and the Revenue generated Minus the true business costs of running your business + advertisement costs.

ROI = (% of All Cost of Product or Service + Advertisement) - Revenue Recieved