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Pay Per Click ROI

The math behind Pay Per Click Advertising

Advertising Costs:

5000 Clicks x .20 per click = $ 1000.00

Conversion Volume:

5000 Clicks x 2% Conversion (to sales) = 100 purchases

Revenue Generated:

100 purchases X 29.95 purchase price = $ 2995.00

Return on Investment:

$ 2995.00 in sales - $ 1000.00 in ad costs = $ 1995.00 ROI

Cost Per Acquisition:

$ 1000.00 in Ad Costs/ 100 purchases = $ 10.00 CPA

In this current scenario for every $ 10.00 spent you make $ 29.95 ($ 19.95 profit).