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Week 10

This week we discussed Return on Investment (ROI) and Optimizing Ad Performance. ROI is how much profit you make from your ads and free product listings compared to how much you spend on them. To calculate ROI, take the revenue (the total income you have earned from you ads and listings), subtract your overall costs (also known as COGS, or cost of goods sold), then divide by your overall costs to get a percentage. The purpose of determining ROI is to tell if the amount you are earning is worth the amount you are spending.


A lot of Optimizing Ad Performance prioritized just reviewing what you already have on your ad. This mostly means checking analytics to see which combinations of your ads are bringing in the most clicks, views, and conversions. If an aspect is bringing in clicks but not creating conversions it might need to be paused while you check your website to make sure everything is the way it should be. Additionally, if an aspect is not bringing in clicks, it is not worth spending money to keep it running, so it should be shut down.


Creating a Web Business:

  1. Review ROI

  2. Optimize Ad Performance

    1. Review Analytics

 
 
 

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