You are considering launching a Google AdWords campaign to promote your new Marketing Agency, “Luminous”. Currently, your budget is $2,500 and you are curious to see what kind of results you’ll get from this investment. You’ve conducted keyword research using Google’s Keyword Planner and have determined that the average CPC is approximately $1.25.

Thinking conservatively, you are expecting your ad to get a 1% click through rate which will lead traffic to a specific landing page you created. On your landing page you anticipate 3% of your visitors will click the “make an appointment today” button to learn more about your marketing services. If 25% of those appointments result in a hiring agreement, and the average price of your consulting package is $12,500, will the investment in AdWord have been worth it?

1. Complete the worksheet to perform an analysis of your paid search investment.

Impressions	Impressions	Impressions
Clicks	Clicks	Clicks	%
Leads	Leads	Leads	%
Conversions	Conversions	Conversions	%
Budget	Budget	Budget
CPC
Consulting price
Revenue
Profit
ROAS
ROAS %	%

2. Based on your analysis above, do you think investing in Google AdWords is worth the expense? Use data to support your answer: do not just answer, “yes” or “no”.

Answer rating: 100% (QA)

Current Budget 2500 The estimated CPC is 125 per click This implies that the budget can support a ma... View the full answer