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

google adwords

A. [US$1500 (revenue)-US$1200 (cost + Google Ads spend)]/ US $1200 (cost +google ads spend)]/US$1200(cost+Google Ads spend)

B. US$1500 (revenue)/US$1200 (cost+Google Ads spend)

C. [US$150(sales price)- US$1500(cost)]/US$700(Google Ads spend)

D. [US$1500(revenue)-10 (number of products sold)]/US$1200(cost+Google Ads Spend)

Correct Answer is:

A. [US$1500 (revenue)-US$1200 (cost + Google Ads spend)]/ US $1200 (cost +google ads spend)]/US$1200(cost+Google Ads spend)