{"id":4145,"date":"2021-02-25T14:05:55","date_gmt":"2021-02-25T14:05:55","guid":{"rendered":"https:\/\/shopthemedetector.com\/blog\/?p=4145"},"modified":"2026-02-02T08:45:53","modified_gmt":"2026-02-02T08:45:53","slug":"how-to-earn-more-profit-from-google-and-bing-ads-on-shopify","status":"publish","type":"post","link":"https:\/\/shopthemedetector.com\/blog\/how-to-earn-more-profit-from-google-and-bing-ads-on-shopify\/","title":{"rendered":"How to Earn More Profit from Google and Bing Ads on Shopify"},"content":{"rendered":"

One of the key aspects of running an online store isn\u2019t about generating money. Any business can earn lots of revenue, it is about earning more profit from your investments. There are several ways that you can build profits on Shopify, but you need to look at investments you\u2019re making and ensuring they\u2019re cost-effective.<\/p>\n

If you advertise on Google and Bing Ads, this is one area where many shop owners fail to consider cost-effectiveness. 2025 statistics showed that Google Ads had an average cost per conversion of between $45-$70. However, the average transaction for online shopping is between $144-$180. Therefore, the best case scenarios suggest that online advertising can actually be more expensive than a sale\u2019s transaction.<\/p>\n

If you\u2019re lucky, before costs of goods and delivery, your profit margins on a sale could be less than 55%.<\/p>\n

Therefore, you need to look at ways to optimize your Google and Bing Ads.<\/p>\n

Key Takeaways<\/div>
1<\/div>
Track performance across Google and Bing Ads to understand costs and revenue per sale.<\/div><\/div>
2<\/div>
Use session recorders to identify and remove conversion barriers on your Shopify site.<\/div><\/div>
3<\/div>
Optimize adverts and website design, including shipping terms, to enhance customer conversion.<\/div><\/div><\/div>\n

ROAS Calculator (Return on Ad Spend)<\/h2>\n

ROAS (Return on Ad Spend) measures the effectiveness of your advertising by showing how much revenue you generate for every dollar spent on ads. It\u2019s calculated by dividing the revenue earned from an ad campaign by the cost of the campaign:<\/p>\n

ROAS = Revenue from Ads \/ Cost of Ads<\/p>\n

For example, if you spend $100 on an ad campaign and generate $500 in sales from it, your ROAS is 5, meaning you made $5 for every $1 spent.<\/p>\n

Here\u2019s why knowing your ROAS is important:<\/p>\n

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  1. Evaluate ad performance: ROAS helps you quickly see which ad campaigns are making money and which aren\u2019t. The higher the ROAS, the more efficient your ads are at driving sales.<\/li>\n
  2. Optimize budget allocation: Knowing your ROAS allows you to allocate your budget to the campaigns with the best return. This ensures you\u2019re investing in ads that actually deliver profits.<\/li>\n
  3. Improve profitability: By focusing on campaigns with high ROAS, you can maximize your profit from advertising. If a campaign isn\u2019t performing, you can adjust or stop it before wasting more money.<\/li>\n
  4. Guide marketing strategy: ROAS shows you which strategies, platforms, or products are driving the most revenue. You can use this information to refine your marketing approach and target more profitable channels.<\/li>\n
  5. Control ad spending: Tracking ROAS ensures you\u2019re not overspending on ads that don\u2019t bring in enough sales. It helps you make smarter decisions about scaling campaigns.<\/li>\n
  6. Assess overall business growth: ROAS reflects how well your business is leveraging ads to grow revenue. A consistently high ROAS is a strong indicator of a sustainable and scalable business model.<\/li>\n<\/ol>\n

    ROAS Calculator - Try it out!<\/h3>\n
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