This week we learned about ROI, Return on Investment. This is important to know. It is very essential to know if what you are doing to market your web business is helping your bottom line. The formula for ROI is (Revenue – Cost of goods sold)/Cost of goods sold.
To be able to track how much of the cost of goods you can attribute to what you are spending on Google Ads you can use Google Analytics. Google Analytics is a tracking code you can embed into your website’s code. This tracks if customers are getting to your site by clicking on your Google Ad. It also tracks if that customer then buys something from your site. In other words, if that customer becomes a conversion (a paying customer).
We also took another look at the performance of our ads, now that our ads are live. I have a few keywords I am going to remove from my keywords list. I feel like negative keywords may help me keep from paying for unprofitable clicks. But I am not sure what the best negative words would be for my situation. Does Google have a negative keyword suggestion area? I will have to look.