April 2, 2020

PPC Calculator: How to Measure ROI For Pay Per Click Advertising

– You’re spending money on Facebook ads and Google AdWords. How do you know if you’re generating ROI? Hey everyone, I’m Neil Patel and today I’m gonna share with you on how you should be measuring the ROI of your paid advertising campaigns. (lively music) Sure, Facebook and Google they try to tell you the
ROI that you’re getting but you know what? They are wrong. The numbers you’re getting
within your Facebook and AdWords accounts usually always show more conversions than
you’re really getting. Just check out your products, your e-commerce store, your lead generation. Whatever you’re trying to get, your leads, I bet you AdWords, Facebook and even Google Analytics
show you more conversions than what you’re really getting. You need to be looking in your database. If you’re not really tracking that number, you’re gonna be off because if a lead or customer
is wroth 100 bucks to you, and Google is saying that hey,
you’re getting 10 customers when only you got five and you’re optimizing your Google spend, you could be losing money and if you’re not tracking it
back to your true conversions, you’re gonna be off. Now, in general, the numbers are off not just for you, not just for me, but for almost everyone. So, what do companies do? Well, they double check their metrics. They know that if their
Facebook metrics say that there’s two conversions, they know, let’s say, if the
rule of thumb is by half, because that’s what your
database is showing, then when Facebook is showing
you had 1,000 sales today, then you really only got 500 and that’s okay. You just need to know how
to optimize your spend based on your true conversions. You have to check within your database for the real sales and lead numbers. It’s that simple. There’s no quick, easy solution being like oh, if you use
this software, it fixes it or if you do this, it fixes it. Everyone says hey, try out this solution, or this company but the real true way that I’ve noticed is I look at my database and my bank account. When I can see numbers coming in, that’s how I know I’ve
really generated sales. I don’t care to see what a number in a software solution
shows me that’s off. I wanna see the real dollars. (lively music)

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