Return on Investment (ROI) is one of the more important metrics in Google Ads. It…
The average ROI or return on ad spend (ROAS) in Google Ads is an important metric to know because it helps you gauge how well your ads are doing and helps you to set a target too.
According to Google, the average ROAS is 200% across the board. That means on average businesses that are running pay per click (PPC) ads are seeing a return of about £2 for every £1 spent. And this makes Google advertising one of the most effective ways to advertise online or offline.
However, this metric is very broad and will differ significantly for different industries, sectors and business types. It will also differ significantly for the campaign types that are found in Google Ads.
There are Search, Shopping, Display, Video, App and other campaign types with a few that Google has released in the last few months and years. So, this means that this average ROAS is the average for all these campaign types combined, which may not always be helpful.
However, Search and Shopping campaigns are usually the most profitable because they allow you to target people who are actively searching for your products or services and so are highly qualified and ready to purchase.
So the ROAS can be good for these types of campaigns. And it will usually be lower for other campaign types like Display because you’re targeting people that are not necessarily searching for your products or services. So, they’ll be browsing on third party websites when they see your image ads.