These two Google Ads ROI calculators will help you understand what your projected ROI could be with prospective search ad campaigns and what they currently are.
No need to get out the calculator, just plug and play. Feel free to bookmark this article for easy access down the road!
Is Knowing Your Google Ads ROI Important for B2B SaaS?
Short Answer: Yes.
Longer Answer: Yes but it takes time to be able to realize which keywords are working and which ones don’t. Especially in SaaS where your initial optimization period could take as long as 120 days!
Knowing your ROI involves setting up quality tracking with accurate values and more.
Google emphasizes the importance of tracking ROI and even has bidding strategies geared towards maximizing it.
Luckily, in SaaS, you normally only have a couple of price points, so setting up conversion value tracking can be easier than an eCommerce platform that has a catalog of offerings.
How Do You Calculate ROI For Your Google Ads?
The key components to calculate your ROI are:
- Conversion Revenue
- Margin (Or Cost Of Services Sold)
- Ad Costs
The basic formula looks like this:
The point of this formula as opposed to calculating conversion value or ROAS (which only factors in ad spend) is that it is the final say in how much value you are getting from Google Ads.
What is a Good Google Ads ROI?
Before you have a 5 ROI, your account needs to reach 1. Optimizing your search ads campaign is essentially the practice of squeezing out more ROI.
Unless you are pushing for conversion volume.
Since your ROI is dependent on margin & average conversion value, a ‘good ROI’ will depend largely on your business operations.
It’s easier to talk about return on ad spend and take margin out of it all together.
The average ROAS for Google Ads is around 200% for all industries.
However, at Search Click Boom, we notice that our accounts that have been with us for 3+ months have 3-5 ROAS.
And since SCB only deals with B2B and SaaS, our margins are very low.
Google Ads Return On Investment Calculator
These two calculators are meant for two different Google Ads purposes. The first calculator enables you to plug in all of the variables and get a number back.
The ROI projection calculator takes into account SaaS and B2B averages to helps you predict things like cost, conversions, conversion value all needed for a desired ROI.
This will help you visualize the value of your search ad campaign as you plan it.
Google Ads ROI Calculator
Enter your ROI factors and find out what your current ROI is!
ROI Projection Calculator
Based on B2B and SaaS averages, you are able to project how much your campaign will cost and what kind of ROI you might get.
What comes before calculating return on investment
Consider that before you aggregate enough data, you won’t be able to make decisions in your Google Ads account based on conversion value.
SaaS sales are often valuable and hand off leads to a sales team.
So before you see conversions to customers, you may want to calculate the value of your leads or just focus on bringing quality leads in.
Lead value can be calculated by taking your average customer value and multiplying it by your lead-to-customer percentage.
Maximizing your B2B or SaaS return on investment
Maximizing your returns in Google Ads comes with great account setup and management.
Most of the time, crappy ROI is a symptom of keywords that are wasting your ad spend.
If this is happening to your ads, consider revisiting your bidding strategy, as some Google Ads bidding strategies will favor certain keywords over others, even if they aren’t doing well.
Another thing to consider is looking for ad groups, keywords, campaigns and other breakdowns that are spending money without getting you anything!