Your client’s product costs £50 to produce, and it sells for £150. She’s sold 10 units and spent £700 on her AdWords campaign. How would you calculate her return on investment (ROI) to help her understand the benefit of using AdWords?

Your client’s product costs £50 to produce, and it sells for £150. She’s sold 10 units and spent £700 on her AdWords campaign. How would you calculate her return on investment (ROI) to help her understand the benefit of using AdWords?

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

The correct answer is:

  • £1500 (revenue) / £1200 (cost + AdWords spend)