When a potential customer performs the action we expect (download an ebook, sign up for an event or buy a product, for example) a conversion occurs. The main KPIs to measure the sales and conversions we achieve are these:
Cost per Conversion. This metric gives you the average amount you have paid to obtain a conversion. As I mentioned before, you must first configure what a conversion is for you in Google Ads: sale, lead, click, download, etc. If, for example, you have invested €100 in a campaign and have obtained 5 sales (and sales are your objective), the cost per latvia phone number data conversion is €20. You must divide the investment by the number of conversions.
Conversion Rate (CR). The conversion rate in Google Ads is the ratio between the number of users who have visited a website and those who have performed the action you want.
In addition, there is an essential concept to know the profitability of your advertising campaigns through Google Ads. It is the return on investment, also known as ROI (Return on Investment).
The importance of ROI in Google Ads
When you invest in advertising, you need to analyze whether the budget you invested has generated profits . If you are investing more money than you are earning, you are wasting resources and you should put a stop to this money leak; in the same way, you should know if an advertisement is bringing in more profits than others in order to direct your efforts there.
Calculating ROI is not complicated and with a simple calculation you can find out what your return on investment is . It is a value (percentage) that measures the performance of an investment to evaluate how efficient the spending we are making on that item is.