Return on Investment reflects the portion of the money invested on ad campaigns. A formula is used to compute for the ROI which is as follows:

ROI = (revenue – costs) / (costs) * 100

ROI should be analyzed thoroughly and all costs including Internet bills, PPC costs, and other payments should be included when computing for ROI.

Conversion is also correctly done when the ROI is computed accordingly.

Tracking the Return on Investments lets you see which keywords are doing well and which are not. It can also reflect the performance of your ad campaigns. In tracking your ROI, it is important to keep an updated list of every keyword and ad that you have used.

Tracking ROI is made easier using some tools available in Google Adwords. Google Adwords has a conversion tracking tool which lets you track and manage your ROI effectively.

This can also be used to monitor and manage website performance.

Things to consider in improving ROI:

Traffic Cost- Manage your costs strictly. Stop unnecessary costs such as poor keywords. Use better performing ads for a lower traffic cost.

Conversion Rates- Make sure that your content and design are striking enough to catch attention. The more visitors in your site, the higher conversion rates that you'll have.

You can run as many ads and keywords that you want as long as you know how to track your ROI correctly. Make sure that you keep your records up to date to avoid grave mistakes.

For more info regarding Google Adwords, Pay per Click and ROI, visit www.nettclicks.com.au