Your Client’s Product Costs US$50 To Produce, And It Sells For US$150. She’s Sold 10 Units And Spent US$700 On Her Google Ads Campaign. How Would You Calculate Her Return On Investment (ROI) To Help Her Understand The Benefit Of Using Google Ads?

• US$1500 (revenue) / US$1200 (cost + Google Ads spend)
• [US$1500 (revenue) – 10 (number of products sold)] / US$1200 (cost + Google Ads spend)
• [US$150 (sales price) – US$1500 (cost)] / US$700 (Google Ads spend)
• [US$1500 (revenue) – US$1200 (cost + Google Ads spend)] / US$1200 (cost + Google Ads spend)

The correct answer is:

• [US$1500 (revenue) – US$1200 (cost + Google Ads spend)] / US$1200 (cost + Google Ads spend)

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Sources: Google Ads Search Certification Course

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