PPC advertising ROI calculator is a tool used to calculate the return on investment (ROI) of a PPC advertising campaign. The calculator evaluates the effectiveness of an investment in PPC advertising by measuring the total number of clicks, the cost-per-click, the conversion rate to purchase, and the average order value. The calculator looks at the revenue generated from PPC over a certain period of time and compares it to the amount of money spent on the campaign. The calculator inputs are:
Number of clicks generated by the campaign.
The cost-per-click (in $) to generate the clicks in 1.
The conversion rate to purchase of the campaign.
The average order value (in $) of purchase/subscription
Example:
ROI = (1000 x 5% x $50) - $500 / $500ROI = $250 / $500
ROI = 0.5
This means that for every $1 spent on the PPC campaign, the company made a profit of $0.50.