Those who are using Google Adwords as a form of online advertising must look at the numbers to ensure that the process is actually making them money. Many people feel as though any money that is put into advertising is sure to create financial gains, but if you do not have the right Google Adwords advertising plan, it will not do you any good. Luckily, it is relatively easy to figure out how much good your plan is doing for you.

Create a Landing Page

When using Google Adwords advertising or any form of PPC advertising, it is vital that you set up a landing page on your website. This page shows where your traffic is going, so that you know how much traffic is being generated through your marketing campaign. Make sure that the only traffic that reaches the page comes through PPC advertising, as this is the only way to get the correct results.

Once you have a set up the page and have control of the traffic that can reach it, create a unique email address and phone number for the page. This is a great way to test the effectiveness of your Google Adwords advertising, since every inquiry that you receive will originate from your advertisement. The phone number and email address act as a tracking device. If you do not receive many inquiries, it means that your online advertising campaign requires some immediately changes.

Contact Your Leads

While conducting this experiment, you can continue to turn your leads into sales. Since those who contact you through your new phone number or email address are responding directly to your advertisement, you can classify them as legitimate leads. At the same time, you can keep track of the nature of the calls and what the people asked about once they contacted you. Once again, this shows what is working in your advertisements and what needs improvement.

Do the Calculations

After a few weeks, you will have a basic idea of how well this online advertising is working. Add up the sales that you have made through your Google Adwords advertising and subtract the cost from this number. This should give you a very good idea of the profit involved with your current PPC advertising campaign. If you find that you are paying too much per inquiry, you might have to make some adjustments to your advertising plan.

Getting a Return

The most important thing involved with Google Adwords advertising is to receive a return on your investment. There is no point in throwing money into PPC advertising if you are not receiving a return in the form of inquires or sales. That is not to say that you should write off Google Adwords advertising if your first campaign does not work, but rather that you should make the necessary adjustment to ensure that your PPC advertising starts to attract clients.