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Finding ROI with Online Ad Campaigns How-To Guide


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Executive Summary

This How-To Guide has been designed to provide practical advice for implementing online advertising campaigns, such as Google AdWords and other pay-per-click (PPC) campaigns, and and evaluating the return on investment (ROI) for these campaigns.

Read this brief 2-page guide to learn:

The Benefits of Online Advertising Campaigns
How to Determine ROI On Campaigns
What Are the Key Considerations
Action Plan for Implementing Campaign & Evaluating ROI
Identify ROI With Our Online Advertising ROI Calculator

Read this report to learn how to implement an online advertising campaign and how to find the ROI for each campaign. Begin evaluating the ROI on your campaigns by utilizing our Online Advertising ROI Calculator.

Demand Metric's How-To Guides are designed to provide practical, on-the-job training and education and provide context for using our premium tools & templates. If there is a topic that you would like to see covered, please contact us at (link sends e-mail) to make a content request.

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Finding ROI with Online Ad Campaigns How-To Guide

  1. 1. Executive Summary © 2009 Demand Metric Research Corporation Finding ROI with Online Advertising Campaigns Search engine keyword programs like Google AdWords and other pay-per-click (PPC) advertising campaigns have proven to be an exceptionally inexpensive method for generating web traffic, qualified leads, and online web-sale revenues. Determining how much daily budget to set aside; knowing the right amount to spend per-click; and assessing ROI, can be much more difficult tasks. Use our downloadable Online Advertising ROI Calculator for help with your next program. What are the Key Considerations? • Product Price - what is the online selling price for your product? • Cost of Goods Sold - for each unit of product sold, what are your costs? • Lead Conversion % - what percentage of web visitors will purchase? • Daily Advertising Budget - what is the max you are willing to spend daily? • Cost Per Click - how much does it cost to purchase keywords/ad clicks? • Daily Leads - how many leads (web visitors) will your budget provide? • Revenue Per Month - how much incremental revenue will be generated? Action Plan: 1. Understand Pay-Per-Click - read our summary Pull Prospects with Google AdWords to get a high level understanding of this concept. 2. Short-List your Keywords - create a list of keywords that are likely to be searched for by your target audience. Use Google's Keyword Tool to generate a long list of related keywords and phrases, and view pay-per-click estimates. 3. Determine Lead Conversion % - if you have transactional data already, identify how many visitors it takes to generate one new web-sale. If you do not have the data, make a conservative estimate such as 0.05% conversion. 4. Assess ROI for Campaign - use our Online Advertising ROI Calculator to determine what kind of revenue & ROI to expect based on your daily advertising budget. Reassess conversion rates after the first month.