Accurately calculating ROI in an online ad campaign
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Calculating ROI in an online ad campaign, p.2

April 30, 2004

(Continued)

How to boost your ROI in any online marketing campaign
In order to calculate a campaign’s ROI with a reasonable amount of accuracy, you will need to have access to these five important data sets:

1. The number of clicks from visitors that used your paid listings. That number is usually provided by the search engine used in your ad campaign.

2. The amount of money you spend during a given timeframe. Many search engine marketers run daily, weekly or sometimes monthly campaigns and output ROI reports for those periods. Again, this data is provided by the search engine used during that advertising campaign.

3. The number of completed orders (or sales) from the paid listings for the specific product or service you are offering. These numbers are generated by the eCommerce functionality of your site or the eCommerce solution you are using, if provided by a third party.

4. The retail price of a product. That data should immediately be available to you, since you are the administrator of that campaign.

5. The total dollar amount in sales generated by all your orders for that product, which came directly from those paid listings. That data is available from your eCommerce solution or eCommerce third party solution.

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Article written by Serge Thibodeau,
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