Return on investment (ROI) is the ratio of your net profit to your costs. It’s one of the most important KPIs for an advertiser because it’s based on your specific advertising goals and shows your advertising efforts’ real effect on your business.
The exact method you use to calculate ROI depends upon the goals of your campaign. Whether you use Google Ads to increase sales, generate leads, or drive other valuable customer activity, measuring your ROI is a good idea. It helps you evaluate whether the money you’re spending on Google Ads generates profit.