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

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

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

Correct Answer is :
[£1500 (revenue) – £1200 (cost + Google Ads spend)] / £1200 (cost + Google Ads spend)


Source: https://academy.exceedlms.com

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