Google AdWords Return on Investment (ROI)
An effective, and efficient advertising program needs to satisfy two important tests to prove it has a strong Return on Investment. The first test is does it generate results (usually measured by "leads" or "sales") and the second advertising test is can you prove the results with data, with conclusive dollars and cents data? Regarding the first test, Google AdWords delivers result on multiple levels. The first level of results is that with every click, as every click delivers traffic to your website. By using the Conversion Tracking tool in AdWords, you can also track the results further, from visitors to visitors who fill out a online form (leads) or complete a shopping cart transaction (sales). The second test (can you measure it), is satisfied by the extremely detailed report features inside Google AdWords administration area. You can view your campaign stats by keywords, by ads, by geography, by date range, any measure you need to properly evaluate the Return on Google AdWords.
What gets measured...
"What gets measured gets done". The old adage applies to AdWords. When you attempt to evaluate the effectiveness of an offline advertising program, such as newspaper ad or a print magazine, there is very little to directly connect the data points and measurement of outcomes if very difficult to attribute to a specific activity. Yes, I do still believe offline Marketing is effective and helps drive brand awareness and brand perception, and can actually stimulate consumer/buyer activity, but measurement is imprecise. With the direct link between dollars spent and the results data in AdWords, there simply is no question as to whether you are producing a positive ROI with your program. It is directly possible to measure and improve your return on investment in AdWords through the use of optimization tools based on results data, and then to point your efforts where improvements in your AdWords performance are most likely.
Unlike almost any other marketing program, AdWords does not require a minimum spend or force you to spend even when there are no results. You only pay when a user clicks on your ad, which takes them directly to your site. You can adjust, pause, or stop your campaigns at any time.
To get started with Google AdWords, and get $100 of advertising FREE, visit our Managed AdWords Campaign page