The average ROI or return on ad spend (ROAS) in Google Ads is an important…
Return on Investment (ROI) is one of the more important metrics in Google Ads. It helps you quickly see if your ads are working or not and then you can take action to improve things. And it’s simply the amount you are making for the money you’re spending in your account.
But ROI is not a metric you can see in Google Ads. You’ll not be able to see it in any reports and that can be a challenge.
But it’s easy to calculate and you can do so yourself. The formula for ROI is:
And there are metrics like cost per conversion and conversions, that will help you to calculate it, because they show you what returns you’re getting.
In this article, I share a few tips to help you increase your ROI in Google Ads:
Make your visitors have a great website experience
Aim to create a great expedience for every user that arrives on your website. One way to help you with that is by recording visitor sessions to see what your visitors are doing on your website and what they are most interested in.
This can be very insightful. And every business with a website and that is promoting it should do this.
A tool that can help you with that is HotJar. This powerful platform was built to help website owners and webmasters with great resources to carry out visitor research without spending thousands or millions of dollars as used to happen in the past.
In the past, only big corporations with large marketing budgets could carry out this research with teams of experts.
Now, even the smallest of businesses can carry out this research, and do it for free too.
Next, you’ll update your website and landing pages in line with the findings that you’ve discovered in your review and research.
Don’t waste advertising budget
Many advertisers in Google Ads waste budget on things that don’t bring results. It’s true of course that you need to test different features and controls and campaign types to see which are the best for your products, services or business.
However, before you do that you need to first have clear goals that will help you reach the right people.
For example, a professional service business like an accountant should only focus on targeting people with search ads primarily or at the beginning because that allows you to target audiences that are likely to convert.
So, running a Display campaign would usually not be a good idea. It will cost money that will not bring back any results. You should only focus on targeting people who are actively searching for an accountant.
Also, always make sure you’re checking your search terms reports to ensure you’re targeting the right searches. Don’t waste money on searches that are not relevant. Make sure you block them by adding them as negative keywords.
Don’t run ads without conversion tracking
A big mistake that many advertisers make is setting up campaigns and running them, but not setting up conversion tracking.
So, you should set up tracking as soon as you’ve created your first campaign or just before. Either way, don’t run any ads without conversion tracking in place.
It will help you to see which keywords, ads, search queries, ad groups and so on are driving sales or leads for your business.
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