Your client's product costs £50 to produce and it sells for £150. They've sold 10 units and spent £700 on their AdWords campaign. How would you calculate their return on investment (ROI) to help them understand the benefit of using AdWords?

Your client's product costs £50 to produce and it sells for £150. They've sold 10 units and spent £700 on their AdWords campaign. How would you calculate their return on investment (ROI) to help them understand the benefit of using AdWords?

Answer

•  £1500 (revenue) / £1200 (cost + AdWords spend)
•  [£1500 (revenue) – £1200 (cost + AdWords spend)] / £1200 (cost + AdWords spend)
•  [£1500 (revenue) – 10 (number of products sold)] / £1200 (cost + AdWords spend)
•  [£150 (sales price) – £1500 (cost)] / £700 (AdWords spend)