- By Camila Ante
Knowing which campaigns offer the best return on your investment is essential to ensure that your marketing budget is appropriately allocated in new foreign markets. This will allow you to focus on investing in the campaigns that work best for your business.
Measuring your return on investment is important
By measuring the ROI of your Google Ads advertising, whether you use it to increase sales, generate leads, or encourage other valuable customer activities, you can assess whether the money you invested is generating profit for your business.
Helpful ROI Reminder
Simply put, ROI is the ratio of your net earnings to your costs. It is based on your specific marketing goals and shows the real effect that your advertising efforts have on the export market.
How does it work:
The exact method of calculating ROI will depend on the goals of your Google Ads campaigns.
Let's say you have a product that costs $ 100 to manufacture and you sell it to the export market for $ 200. Thanks to Google Ads, you sell six units of this product. This equates to a total cost of $ 600 and total sales of $ 1,200. If Google Ads costs are $ 200, the total cost would be $ 800. Your ROI is calculated as follows: ($ 1,200 - USD 800) / USD 800 = 50%
In this example, you get an ROI of 50%. This means that for every $ 1 you invest, you receive $ 1.50.
In the case of physical products, the cost of the goods that you sell to the export market is equal to the manufacturing cost of all the units that were sold plus advertising costs. Income is the money you made from the sale of those products. The amount invested for each sale is called the cost per conversion.
If your company generates business opportunities, the cost of goods sold equals only your advertising costs, and your income equals the profit you make from a typical potential customer. For example, if you typically make one sale for every 10 leads and a typical sale is $ 20, then each lead generates an average revenue of $ 2.
The cost of getting a potential customer is called the cost per acquisition.
How does calculating ROI help you?
Calculating your ROI tells you how much money a particular Google Ads campaign made. It allows you to make informed decisions about how best to spend your marketing budget. Knowing your ROI can help you choose to spend more money on a successful Google Ads campaign and less on those that don't get the results you want. Using ROI data can also help you fine-tune and improve less successful campaigns.
How to measure your ROI
To know your ROI, you will need to measure the customer actions that are valuable to your company in your new market. These could be purchases, registrations, website visits, potential customer inquiries, or video views. These actions are known as conversions.
You can track the number of clicks that convert with the free Google Ads conversion tracking tool. Conversion tracking can also help you determine the profitability of a keyword or ad, and keep track of conversion rates and costs for each conversion.
Once you've started measuring conversions for your new export market, you can start evaluating your ROI. The value of each conversion must be greater than the amount you invested to obtain it.
For example, if you spend $ 10 on clicks to get a sale and receive $ 15 for that sale, it means that you made a profit of $ 5 and received a good return on your investment in Google Ads.
3 Measurement of Google Ads performance
Setting a goal for each of your Google Ads campaigns is the key to measuring your performance. Do you want to increase traffic to your website? Or do you want to increase sales or conversions in your export market? Whatever your goal, the best information can help you track your ROI and make informed changes to improve your advertising and marketing spend.
1. Increase traffic to your website
This is a common goal among companies entering a new export market. You should focus on increasing the number of clicks and click-through rate, monitoring your keywords, and reviewing your search terms.
To increase the number of clicks and click-through rate on your site, do the following:
- Create excellent copy for your ads.
- Organize your ad groups based on a common theme, goal, or product.
- Create shorter lists of closely related keywords to ensure your ads are relevant and attractive to your customers.
Additional tips for creating successful text ads
Keep a good list of keywords to create high-quality user traffic. Monitor the performance of your keywords. Remove and replace those that are not performing well. A click-through rate of 1% or higher means your keywords are performing well for you.
You can see a list of customer searches that triggered your ad in your account, and then add them as new keywords. You can also add search terms that are irrelevant to your business as negative keywords. A Google Ads search terms report can help you distinguish between general traffic to your ads and relevant traffic from users you would like to convert to customers.
Suggestion
Negative keywords prevent your ad or campaign from showing to people who are looking for something you don't offer. For example, for an animal care center you would put "child care" as a negative keyword. That's because the ad is intended to show to animal-loving shoppers, but not to parents looking for daycare. Adding negative keywords makes your ad relevant only to people who want to find your business.
A search term is the exact word or the exact set of words that a customer enters when searching a site on the Search Network. A keyword is the word or set of words that Google Ads users create for a given ad group in order to target their ads to customers.
2. Increase sales and conversions
A conversion happens when someone clicks on your ad and takes an action on your site. It could be a purchase or a request for information. Increasing conversions might be your goal if you want to use a Google Ads campaign to sell a large quantity of a particular product in a new market. It is also suitable if you want to invite people to sign up for a service.
The most important step you can take to increase sales and other conversions is to start paying close attention to your conversion data and update your campaigns based on what you find out.
After tracking your conversions, you may find that a certain keyword generates a lot of conversions, while another does not. If you want, you can spend more of your marketing budget on the keyword that generates the most conversions.
You should also make sure that the destination URL you use for each ad directs customers to the most relevant page on your website. This web page must match the specific product or service that is highlighted in your ad.
3. Increase brand awareness
Increasing brand awareness should be your goal if you created a Google Ads campaign for the following:
- Draw attention to one of your products or services
- Encourage users to interact with your brand
- Give users a sneak peek of a new video
- You should focus on increasing impressions, customer engagement, reach, and frequency.
Impressions represent the number of users who saw your ad. So if you want to show your Google Ads campaigns to as many users as possible within your target audience, increasing impressions on your site should be a priority.
Do users click on your ads or watch a video? Of course this is a good thing because they interact with your company. Measure your interactions using click-through rates for Search campaigns and use conversions for Display campaigns to measure visitor engagement on your site. Use your reach and frequency numbers to see how many people are exposed to your ad and how often they see it.
4. Increase your return on investment (ROI)
You can use ROI calculations to compare two ad campaigns and see how much money you made from each one. For example, a luggage manufacturer might determine that a less expensive blue carry-on that sells more quickly in one campaign actually generates more revenue than a more expensive carry-on in a different campaign.
To do this, you need to focus on conversions. To improve ROI, you must first start measuring conversions. Once you've done this, you can evaluate your ROI to make sure that the money you spend on advertising turns into profit for your business.
SuggestionConversions are customer actions that you consider valuable, such as purchases, registrations, visits to a web page, or inquiries from potential customers. Use the free conversion tracking tool to keep track of how many clicks are converting.
Knowing which Google Ads campaigns work best for your business is easier with Google Analytics' data tracking and ROI measurement tools. They give you the freedom and flexibility to adapt your marketing strategy to the needs of a new market whenever you need it.
