ROI 'certainly matters the most'

14 September 2007

There are many different methods of measuring the success of paid search campaigns, according to Fred Vallaeys.

But in an Inside AdWords blog post, the 'product evangelist' asserts that return on investment (ROI) is the most important.

Mr Vallaeys explains that ROI is calculated by dividing the profit made on a particular product by the amount spent marketing it on AdWords.

And campaigns where the primary aim is to make a profit should have an ROI greater than 100 per cent, he adds.

"It's possible to miss out on potential profit if close attention isn't paid to the one metric that almost certainly matters the most - ROI," he states.

"While impressions, clicks, clickthrough rate and costs are all important components that contribute to the ROI, these metrics only show part of the picture."

Mike Moran, author of Search Engine Marketing, Inc., recently told WebProNews that metrics are a key means of determining the amount which should be spent on a particular search marketing campaign.

Category: Google