Showing clicks to a website is great. It shows that your paid search campaigns are drawing eyeballs and interest to your business. But are those clicks actually turning into new business? Whenever possible, we create goals and ROI models to show you actually how much new business is a result of your paid search investment.
For example, let’s say you know that it takes 10 leads to result in a new customer and each new customer is worth $100 now and will also spend another $900 over the course of one year.
By knowing this information and by setting up goals we can provide an ROI estimation. So, if we drive 100 new website visitors in a month through paid search, we can assume that 10 of them will be paying customers at a value of $1,000 per customer. So, that month’s paid search investment resulted in $10,000 in new business.
By understanding the incremental dollar amount the paid search campaigns are driving, it is easier to evaluate your paid search investment and to calculate an ROI.