Advertiser Education: What is Return on Investment?

In Part I of ROI, Julie and Fred explain how to calculate Return on Investment for your Google AdWords account.

Category:

Howto & Style

Tags:

• advertiser
• education
• roi
• adwords
• google
• optimization
• tips
• learning

[WinGreenMarketing]

At 0:55, the guy says that "when ROI is 100%, you're breaking even. When it's higher, you're making money.".

This is incorrect. At 0% ROI, you're breaking even. Anything above 0% is "making money".

[avartan]

great video...very helpful...adwords is so confusing!

and these googlers have so much charisma.

[ForexReviewsCentral]

thanks for the lesson. I'll keep in mind.

[WinGreenMarketing]

Nope. You can think or wish whatever you want, but you're incorrect. Breakeven is 0% ROI. Positive ROI, i.e. anything greater than 0%, is more than breakeven, by definition. Return on Investment = Return divided by Investment. At breakeven, return is zero. Like I said, you can hope or wish whatever you want, but in this life, mathematical constructs have nothing to do with opinion, they're indisputable facts, and there are often many many wrong choices while only one choice is correct.

[DGFrogz]

@WinGreenMarketing  Wrong! ROI is a division sum Benefits/ Costs x 100. 100% means costs = benefits and you are breaking even

The guy on the video is correct

DGFrogz

[authorclicks]

The ability to track ROI is one of the best features of Google AdWords. It's difficult to track individual parts of integrated media campaigns. Tracking the business derived immediately (even within 30 days of a visitor's initial click) can help one optimize keyword lists, ad verbiage and more. If you've got other matters to attend to at your business, AuthorClicks can help. We'll create and manage your campaign for you. Ask us for a quote today.

[roicatalysts]

Love this video. Very informative. There's nothing more important than ROI . Our site is entirely dedicated to it.

[Homitzky]

@WinGreenMarketing Sure...

[fastaccesswebsites]

You can spend as much as you like on clicks but if your site is not converting then you really not getting the full benefit. Check out fastaccesswebsites com for a full range of options to really help your ROI

[EARNonGOOGLEADSENSE]

Great video and usefull. I can share google/clickbank auto earn method ..

[21rockrock12]

I am trying to win scholarship for my college Ivy Tech, ff I have the most views by August 1, 2010 I win a scholarship for an entire year at college. Please watch my short, funny, 6 second video, thank you views!