Am I spending too much or too little on AdWords?

Am I spending too much or too little on AdWords?

Using Google AdWords can dramatically increase your website traffic which may lead to improved overall sales and conversion rate.

DigMyData lets you monitor how you spend on AdWords.

To do this, setup the Revenue per Ad Cost line:

1. Add a new calculation line and setup the following in the New calculation line dialog:

 

 

 

 

 

 

 

 

 

· Take Total Revenue calculation line

· divide it by AdWords Ad Cost

· Name it as Revenue per Ad Cost

· set the line format as Currency

2. Click the Save button to add the new line into the chart line list at the left pane.

3. Show this line in Deep View so you can see how it changes over time.

 

 

 

 

 

 

 

 

In the example above, looking at the month of May, you can see that it has optimum spend. So, for every dollar you spend on revenue, you also spend an equivalent dollar amount for ads. And in the next few months, revenue is fairly low. It certainly looks like revenue is not getting a good return.

For effective spending, designate a limit for your AdWords expense. Consider any amount in excess of your set limit as money wasted.