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ROI calculator for digital advertising
What is ROI in advertising? Return on investment in digital advertising is the index that examines the net profit from every shekel invested in campaigns. The ROI calculator allows you to calculate the expected profitability from advertising inGoogle Ads, Facebook Ads and-Instagram Ads.
The formula: (Revenues – costs) / costs x 100
Many business managers ask "If I invest X shekels in advertising, how much will I get back?". adwrks agency Developed the interactive ROI calculator for sponsored advertising.
How does the ROI calculator work?
The ROI calculator uses three key metrics:
- Cost per click (CPC) and cost per lead (CPL) - How much does it cost to bring a surfer. read How much does Google advertising cost?
- Conversion percentage – Out of 100 people, how many actually bought
- Average transaction value – How much does a customer pay on average
Table of industry averages
| business | channel | CPL | ROI |
|---|---|---|---|
| store | ₪45 | 200-350% | |
| store | Meta | ₪35 | 180-300% |
| profession | ₪55 | 250-450% | |
| profession | Meta | ₪45 | 200-350% |
| B2B | ₪80 | 300-500% | |
| B2B | Meta | ₪65 | 250-400% |
The effect of the advertising channel on ROI
The ROI is different on each platform. קראו על Sponsored Promotion VS Organic:
- Google: High conversion because surfers are actively searching. read Advertising on Google: 10 steps
- Facebook: Disruptive marketing, strong creative is required. Read about Advertising on Facebook
- Instagram: Great for visual brands. Read about Marketing on Facebook and Instagram
For maximum results, it is recommended to useGoogle campaign management professional.
3 common mistakes
- Ignoring LTV: Calculation only on the first purchase
- Exclusion of ancillary expenses: Shipments, commissions
- short period: Give the campaign 14-30 days
frequently asked questions
What is the difference between ROI and ROAS?
ROAS measures revenue against media budget. ROI shows true profitability including all expenses.
What is considered a good result?
A ratio of 3:1 (300%) is considered good. Leading agencies aim for 4:1 or 5:1.
How to improve the ROI?
- Landing page improvement
- Cleaning irrelevant audiences
- Remarketing
How long does it take to see results?
Campaigns require 2-4 weeks. Don't judge too soon!
↑ Use the ROI calculator above
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