⚡⚡?Anne-Marie’s business goal is to generate online sales of her handmade purses. Her AdWords costs are $100 per week and she wants to know if her advertising investment is paying off. What additional information do you need in order to calculate her return on investment (ROI)?

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Question: Anne-Marie’s business goal is to generate online sales of her handmade purses. Her AdWords costs are $100 per week and she wants to know if her advertising investment is paying off. What additional information do you need in order to calculate her return on investment (ROI)?

  • Number of clicks on her ads and costs to produce her purses
  • How many times her ads have been viewed and clicked on
  • Number of clicks on her ads and revenue they generated
  • Costs to produce her purses and revenue generated from her ads

Answer is:

  • Costs to produce her purses and revenue generated from her ads

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Explanation:

Anne-Marie would like to know if the advertising she has invested is paying off. She also needs information about her expenses and the revenue from her ads. This information will help her calculate her return on investment.

Your ROI is the ratio between your net profit and your costs. This measurement is often the most important for advertisers because it is based on your specific advertising goals. It shows how your advertising has affected your business. The goals of your campaign will determine the method you use for calculating ROI.

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

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