Calculating Return on Investment

Businesses of every size are concerned about their return on investment. All investments, whether time or money, must generate a positive return on the investment in order to remain in business. The return on investment for advertising is often the hardest to calculate due to intangible evidence used in the equation. Pay-per-click (PPC) advertising offers a unique opportunity to more accurately calculate the return on investment. To understand how PPC advertising returns can more accurately be determined one must understand how ROI is calculated, where the equation is wrong and how the equation should be adjusted for greater accuracy.

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