Your client’s product costs £50 to produce, and it sells for £150. She’s sold 10 units and spent £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?

Question

Asked: November 15, 20212021-11-15T03:47:42+00:00 2021-11-15T03:47:42+00:00In: Digital Marketing

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

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Vemula Sinu · Accepted Answer · 2021-11-15T03:49:27+00:00

The correct answer for the above question is:

[£1500 (revenue) – £1200 (cost + Google Ads spend)] / £1200 (cost + Google Ads spend)

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