What to calculate before increasing Google Ads spend
Before pushing more budget into search or shopping campaigns, check whether clicks are affordable, conversions are happening at an acceptable cost, and revenue is high enough to justify the spend.
- Use CPC to understand how much each paid visit costs.
- Use CPA to judge whether leads, trials or orders are affordable.
- Use ROAS to compare revenue with ad spend.
- Use ROI when product margin, fulfilment costs or agency fees matter.