ROI & Tracking
I’ve always wondered how I could figure out how much money I’m really making in relation to how much I’m spending (return on investment or ROI). Thankfully, I did some research for a class and figured it out a little. Here’s what I found.
Blue Jay Stickers ROI
I can fit 100 blue jay stickers on my sticker sheet that prints for $30. My AdWords campaign will cost $25 for 18 days. That’s $55 total in cost. With this to go off, we know that each sticker costs $0.55 to produce because there are 100 ($55/100). I sell them for $1 on my website.
If I make 10 conversions, here’s what my ROI will be.
(Revenue – Cost) / Cost
($10-$5.50)/$5.50=0.81 ROI
This means I will receive a 0.81% return on investment. For each $1 I spend, I’ll make back $1.81. Now I know that it’s a good investment because I’m making back more than I’m putting in.
Optimizing Ads
I figured it would be wise to keep track of my progress with ads. I’m excited to see how things turn out.
As of June 22, 2017:
- When did you start the campaign?
- June 15
- How many clicks has it had?
- 28
- How many impressions has it had?
- 21,442
- What is the average Cost per Click (CPC)?
- $0.68
- What is the average ad position?
- 1
- What is the conversion rate? (e.g., how many conversions have you received using Conversion Tracking OR how many transactions have you had?)
- 0%
- What Keywords do you want to add, delete, or pause? Why?
- Best place to buy stickers – no impressions
- Places to buy stickers – no impressions
- Best sticker company – no impressions; not really about my business
- What Ads do you want to add, delete, or pause? Why?
- My “Custom Stickers” ad is bringing in some impressions (8,070), but “Illustrated Stickers” has a few thousand more (13,372). I want to put most of my campaign money toward this because it performs better.
