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Google AdWords Calculator

Google Ad Words Calculator

Have you ever wondered how effective you Google Ad Words campaign is? Are you spending too much and not reaping the rewards, the Google Ad Words Calculator will help you see if you are making profit from sales through Google Ad Words.

How to use this tool

Complete the form below with the required data, all information can be obtained from your sales/marketing department and Google Analytics.

In the users field, enter the number of users that are required to view your site to make a sale
In the Through Rate field, enter the sites click through rate based on Ad Words
In the Spend field, enter how much you are prepared to spend per click to make a sale
In the Traffic field, enter the expected traffic (average per click) on your site

Click calculate and the result will show you how much you should be spending on Google Adwords (per click) to be able to make a profit.

Customers: What do I put in here?
1. The Customers value is based on the number of people who visit your site and then purchase an item from your store: this is known as "the number of people required to make a sale". If you get 2500 users per month to your site but only 350 actually purchase from you, then the amount you would enter here is 350. This information can be obtained from Google Analytics, but for more accurate information we would suggest that up-to-date figures be obtained from your sales team.

Through Rate (%): What do I put in here?
1. The through rate field refers to the Clickthrough Rate (CTR) from Google Analytics. This is the number of times an ad is clicked on, divided by the number of impressions it receives. This would mean for an ad that is shown 300 times and as a result is clicked on 50 times the resultant Clickthrough Rate would be 16.6%. You can get your Clickthrough Rate from Google Analytics AdWords.

Spend (£): What do I put in here?
1. The Spend field is the amount of money that you are prepared to spend in order to be able to make a sale. If your average sale is £120, and in order to make that sale you are willing to spend £10, then enter 10 into the field.

Traffic: What do I put in here?
1. The Traffic field is the monthly average of the number of visitors you get to your site. This information can be obtained through Google Analytics by viewing the report for your site and examining the data relating to traffic. Your average monthly visits is entered above.

Revenue from a Sale (£): What do I put in here?
1. The Revenue field is the amount of money on average you would expect to make from a sale. This price should exclude the spend amount above and be the total amount you expect to make. If you make an average sale of £325 but have spent £35 to be able to secure that sale the amount you would enter in here is 325.