PPC ROI Calculator
Want to take your business to the next level? Google Ads Pay Per Click (PPC) Advertising is the perfect solution to drive targeted traffic, convert customers and boost your bottom line. But how much return on investment can you really expect? Find out by using our ROI calculator below.
ROI for service-based businesses using Google Ads
Based on these numbers, here is what you could expect for return on investment*
Get a Great ROI with Google Ads PPC!
At 80/20 Digital, we specialise in building effective PPC campaigns with maximum ROI for our clients. With over 30 years combined experience in our team working with Google Ads, your campaigns are in safe hands.
We focus on the principles of the 80/20 rule to unlock the most powerful 20% of keywords that will deliver 80% of your results, giving you more “bang for your buck.”
Our proven 80/20 strategies maximise sales and minimise waste, which drives profit, saves time, and boosts your bottom line.
Discover the potential value a PPC campaign can bring to your business by using our PPC ROI calculator!
6 Metrics to Measure PPC ROI
Cost Per Click (CPC) is the amount of money an advertiser pays Google each time a user clicks on an ad. The average Cost Per Click (CPC) depends on multiple various factors industry type, budget, the level of competitive bidding for a given keyphrase and more.
The monthly proposed budget has a significant impact on the outcome of the PPC campaign. It is vitally important to budget campaigns correctly. At 80/20 Digital we recommend starting starting with a budget of at least $1,500 for a competitive industry.
Conversion rates refer to the percentage of users who complete a desired action after clicking on a Google Ad, such as making a purchase, calling your business or filling out an enquiry form.
Understanding your enquiry to sales ratio is essential for PPC ROI. A good sales team will close on average 20-40% of sales enquiries. This requires a strong campaign and good sales funnel.
Average Customer Value (AVC) refers to how much your customer is worth at a specific stage of the marketing funnel. We recommend using the lifetime value of a customer for this calculation.
Calculate your profit margins by adding up your sales, subtracting expenses, and dividing by overall revenue.
Like most digital marketing campaigns, ROI for PPC advertising is subjective and is dependent on factors such as business industry and size, as well as the market performance and your business objectives. The best ROI is, of course, the one with the highest profit margins relative to the expected budget and goals.
The cost of your PPC campaign is influenced by a number of factors, including monthly ad spend, targeting of keywords and demographics, and the quality of your ads (low or high). Importantly, the quality of your landing page (the page on your website that the ads link to) is critically important to the success of your campaign.
As our ROI calculator tool is designed to predict potential returns, these ROI numbers are by no means guaranteed. They are here as a point of reference for you to see how a PPC campaign can become an effective part of your digital marketing strategy and to help measure a potential increase in returns relative to budget and optimisation of key metrics.