When you invest in marketing strategies, you’ll want to know whether these efforts pay off. For instance, if you use a Pay-Per-Click (PPC) service like Google Ads, how can you tell that it is working? There’s a simple equation law firms can use to ascertain the revenue generated for each lead that comes in via Google Ads. Let’s take a closer look at this formula and how you can use it to determine how well your investment is performing.
How Google Ads Work For Law Firms
Google Ads are designed to grow your business and ensure that your law firm’s website shows up when people search for legal services in your area. Essentially, your Ad rank is determined by multiplying the maximum bid you specify for your keywords by your quality score. Google encourages you to work with their team to determine an advertising budget that works for you, which you can adjust anytime to suit your needs. They explain that you only pay for actual results, like when clients click on the ad to visit your website or to contact you by phone. You’ll be able to monitor your Google Ads campaign and see how well it is performing.
Calculating Your ROI For a Google Ad Campaign
According to Google, you can determine your return on investment by taking the revenue generated from your ads and listings, subtracting your overall costs, and dividing this number by your overall costs. Put simply, ROI = (Revenue – Cost of Goods Sold) / Cost of Goods Sold. Let’s say you want to advertise a flat fee legal service you offer (let’s say it’s $300), but that includes a filing fee of $150. You get 6 customers who reach out to you because they saw your Google Ad and they pay you for this service. Your total sales are $1,800, and your Google Ads costs are $200. Your ROI for this campaign is ($1,800 – ($900 + $200) / ($900 + 200), or 63 percent.
Track Conversions to Measure Your Google Ads ROI
A key way to keep an eye on your Google Ads ROI is to track your conversions. Conversions are the actions that you hope your clients will take after seeing your Google Ad and visiting your website, such as scheduling a consultation or calling your office. Google offers several free tools, including Google Analytics and conversion tracking, to help you make sense of the conversions in your account. It’s a good idea to monitor your ROI to ensure that your PPC campaigns are bringing in clients; if they are not performing as well as you’d hoped, you can always make some adjustments to the parameters and scope of your campaign to attract more clicks and grow your conversion rate.
Questions about how to use Google Ads to attract new legal clients in your area? Give the LegalRev team a call today at (800) 893-2590 to discuss your digital marketing goals.