Conversions are customer activities that you consider to be useful, such as purchases, sign-ups, website visits, or leads. The first step in calculating your ROI is to monitor conversions, which are customer actions that you perceive to be worthwhile. You may utilize the free conversion tracking feature in Google Ads to assist you in monitoring the number of clicks that convert to actual conversions. Tracking conversions may also assist you in determining whether or not a certain keyword or advertisement is profitable, as well as in monitoring conversion rates and costs-per-conversion.
After you have begun to track conversions, you can next go on to calculate your return on investment (ROI). It is important to make sure that the value of each conversion is higher than the amount of money spent to get the conversion. For instance, if you pay $10 in clicks in order to make a sale and then collect $15 for that transaction, you have generated a profit of $5 and got a solid return on your investment in Google Ads.