5 Essential ROI Formulas Every PPC Manager Really Needs to Know

Formula #1: ROAS

The difference between ROAS (return on ad spend) and ROI (return on investment) is whether or not you’re accounting for a company’s cost of doing business

When you talk about ROI, you’re looking at your PPC spend in a multidimensional way. ROI seeks to answer, “after accounting for the costs of the products or service and after accounting for the cost of advertising, did we make a profit?”

What you need to calculate ROAS:

1. Total Conversion Value
2. Total Cost of Advertising

The Formula:

Total Conversion Value / Total Cost of Advertising

Example:

Your client runs a lead gen website that sells its leads to attorneys throughout the United States. The client asks you what their return on ad spend has been over the past 30 days.

They spent 17,547 INR on their AdWords campaigns which brought in 489 leads. 375 of  those leads were sold to attorneys for an average of INR 130 / lead.

Their total conversion value: 48,750 (130 x 375)
ROAS: 2.78 or 278% (48,750 / 17,547)

You can report back to the client that their ROAS for the past 30 days was 278%, which means that for every rupee spent on advertising they made back 2.78 .

Tip:

AdWords actually has a column specifically built for ROAS called Conv. Val / Cost. If your campaigns are accurately tracking conversion value then you can use this column to calculate your ROAS quickly.

However for non e-commerce sites that aren’t tracking conversion values for each conversion inside the account, you’ll need to calculate ROAS by hand using the information your client gives you.

4 Cool Competitive Analysis Tools Every Digital Marketer Should Use

The other day, i was trying to do a little competitor analysis as to check in what my competitors are upto. I wanted to specifically check whether i was taking full advantage of all the keyword variations and different angles that can be tested to improve the account performance of one of our clients.

So, finally i arrived at a few competitor analysis tools that rescued me and helped me in finding out the keyword variations and some potential new keywords for campaign creation.

They are listed below.

1. SpyFu

With SpyFu, you could actually get some potential keyword variations that your competitors are using. Just simply type in your competitors name on their homepage and you will be welcomed with decent set of keywords. Obviously, i was not one of their paid subscribers so they've shown me very few keywords and for full access, they ask you to buy! what a shame. So, if you want to get that complete list, you should get a paid subscription. But, if you compare with other tools, this seems better to me since you get a peek of what sort of keywords the competitor is using.

Things that successful PPC managers do in the morning

There are lots of articles out there on what successful people do in the mornings and you might have a specific set of things you like to do when you first clock in for the day in order to stay organized.

For PPC agencies and high-level in-house PPC managers, brief morning check-ins with your team can be essential to your clients’ or company’s PPC success. In this post, I’ll outline why I do this and what we’re looking for every morning to make sure we’re on top of our game.

Disclaimer: If you’re a PPC manager at an agency where multiple teams report to you, and each team has an unusually large client load, or you’re in-house managing a massive account, you may have to modify these steps. Further, this practice will only work if each PPC professional on the team has a manageable workload and is committed to the process.

Why have morning PPC check-ins?

As a high-level PPC manager, you want your team to have a good grasp on what’s happening in their accounts daily, and you want to be able to get the information that will help you help them. Here are just two reasons a morning check-in can help create a successful day ahead:

1. Find out what happened yesterday. It’s exciting to see what happened with your account(s) the day before — and essential to know what the wins and losses were.
2. React quickly. A lot can happen in one day, so a morning check-in helps you stay on top of mission-critical adjustments. This is especially important for newly launched campaigns and ad groups.

Following are 12 steps to a successful PPC morning routine. Encourage your team to go through these each morning for each account, then report back to you any interesting findings: