As global digitization accelerates, organizations realize the impending need to invest in digital advertising.
In 2018, the total national ad spend exceeded $125 billion – and it is predicted to continue to rise YOY:
With rising expenditure comes increased scrutiny.
With cutthroat competition, not every ad campaign can drive conversions and offer adequate ROI.
So, how do you know if the money you’re investing is generating revenue or not?
This is where ROAS comes in.
ROAS, or return on ad spend, is a metric for online advertisers, enabling them to track the money they make.
By calculating ROAS, you will know how many dollars you earn for each dollar spent. Additionally, it will determine which ad strategies and techniques work well so that you can apply those to your other ad campaigns.
ROI, or return on investment, is a business-centric metric used to evaluate the effectiveness of your marketing efforts as a whole.
It helps you understand how ads are contributing to your overall business finances and profit.
On the other hand, ROAS assesses the performance of specific campaigns, ad groups, or keywords.
As it focuses on individual advertising campaigns, ROAS is an ad-centric metric. It measures the gross revenue generated based on each dollar spent on ads. This way, you can learn which of your paid ad campaigns are useful and which ones you need to stop pouring money into.
To calculate ROAS for Pay-Per-Click (PPC) ads, you need to know the total PPC revenue generated by your ad strategy and the total cost of managing your ad strategy.
This includes revenue you earn from all different sources, such as product purchases and lead conversions.
Similarly, your cost includes all the expenses you incur when running your ads, such as Cost-Per-Click (CPC), management fees, software upgrades, and partner/vendor costs. Additionally, if you have purchased clicks and impressions, they will add to your expenses.
Now that you have these two figures, you just have to plug them into the ROAS formula.
There are two formulas you can use:
Divide the revenue you made from your ad campaign with the amount you spent to run your ad.
So, for example, you spend $200 on a PPC campaign and make $400 in return. Adding these values to the formula will give you a ROAS of $2. This means you’re making $2 for every $1 you spend.
However, calculating ROAS through this formula only gives you a general overview. It doesn’t tell you the overall profitability of your campaign.
So, for example, you spend $200 and make $400. But your vendor fees also cost $50. Then, the ROAS you calculate will not accurately depict the return you get.
For this reason, it’s better to use the second formula.
If you subtract your cost from the revenue before dividing the result by the cost, it will give you an adequate ROAS.
This formula doesn’t require you to evaluate any new values since it only needs the total revenue and cost. And plugging values in this formula will help you determine your marketing budgets effectively.
ROAS is a metric that needs to be tracked regularly. Ideally, you should track your ROAS throughout the ad campaign instead of at one particular time.
Although there are many indicators you can utilize to assess the success of your marketing campaigns, the end goal of your business is to earn more money.
This means tracking conversions and sales isn’t enough on its own; you need to fit them within your ROAS tracking mechanism.
But first, you need to calculate your revenue. And you can do it by following the two steps below.
The first step is to track your conversions. And you can easily do that on online advertising platforms like Google Ads, Facebook, Twitter, and Bing Ads.
All you need to do is use these platforms to set up an ad campaign and conversion tracking. If you’re using Google Ads, you can even track phone call conversions.
This way, you will know which clicks on your PPC ads led to which purchases. In addition, you will stay updated on your conversion rates and purchases that result from ad clicks.
The next step is to connect your online advertising platform to customer relationship management (CRM) software.
By doing this, you can tie all your marketing data to a new lead. Hence, when a lead converts into a customer, you’ll know exactly which marketing efforts led to the sale.
So, by tracking your conversions and sales, you get access to your revenue data. Simultaneously, the advertising software you use will detail your ad spend.
Now, all you need to do is plug the values in any of the two ROAS formulas, and you’ll know whether your money is being spent right or not.
ROAS enables you to gather valuable insights – based on which you can make informed marketing decisions.
Since the final goal of advertising is to make money, calculating ROAS should be a priority. Even though conversion rate and click-through rates are essential, they don’t guide you regarding changes to your advertising model.
In addition, knowing your ROAS can help you do the following:
Using other metrics alone will not give you complete insights, so you will not make informed marketing decisions.
Think about click data – it tells you the best click-through rate (CTR) and the lowest cost-per-click (CPC). So based on this data, you might think you can evaluate which of your campaigns are successful. But that’s not possible because CTR and CPC don’t tell you the quality of clicks and the traffic you’re getting.
Similarly, conversion data helps you track conversions and point out areas of weakness in your strategy. But it will not determine the quality of traffic and leads you are receiving.
However, ROAS ties all these metrics together by providing you with actual numbers you’re earning and spending on each channel.
Additionally, various factors result in a lower CPC or conversion rate, but that doesn’t mean your campaign is unsuccessful. In fact, such campaigns can still have high profitability. But if you don’t calculate ROAS, you won’t know that.
And then you will make decisions that will cost more than you gain.
A good ROAS target depends on many factors, including your industry, average CPC, and profit margins. This means a satisfactory ROAS varies from business to business.
In addition, a good ROAS differs from campaign to campaign. For instance, campaigns that aim to raise awareness, grow subscriptions and build a following generally have a low ROAS.
But if you want to drive a greater number of conversions and sales, you should expect a higher ROAS.
Still, no general rule can determine how high your ROAS should be. But, most businesses do aim for an overall 4:1 ratio.
Getting $4 for every $1 spent gives you enough money to keep your business afloat or even make a profit.
Here is a breakdown of different ROAS targets you should be aiming for at different phases of your business:
Most businesses think if they make a sale that amounts as much as they spent on marketing, they will break even.
But that’s not true because when you factor in all your variable and fixed costs, you are likely making a loss.
So, making $1 for each dollar you spend on your PPC ad campaign is not enough.
Let’s say you spend $100 on marketing and make a $200 sale. It means you are earning $2 for every dollar you spend.
But, 2x ROAS is still low because fixed costs are generally high, resulting in a deficit.
As long as you get some consistent sales, you can break even with a 3x ROAS.
For example, you spend $50 on marketing, which results in a $150 sale. So, now, you have an added $100, which you can use to cover additional ad-running costs.
4:1 ROAS is where you start making a profit, which is why most businesses aim for at least a 4x ROAS.
When each dollar spent gives you $4 in return, you have enough money to make a profit. But ultimately, that depends on your business model and costs.
So, if you have very high variable and fixed costs, it may not result in a profit. But that is often not the case.
With a 5x ROAS, you can start using your marketing practices to grow your business.
At this stage, you’re making enough profit that you can afford to invest more in your marketing and customize various goal-specific ad campaigns.
In the end, the ideal ROAS for your business depends on your ROAS targets, business expenses, and marketing goals.
Also, if you have different PPC campaigns running simultaneously, set separate ROAS targets for each. Then, calculate their ROAS individually to see if they are bringing in enough cash.
But if your ROAS is still low, look into all other metrics and practices to identify the reasons behind it. Then, when you know which strategies are working, you can implement those across other campaigns.
Not being able to meet your ROAS target can be frustrating. But a low ROAS doesn’t always mean that your campaign is a complete failure.
Sometimes, you can make small changes to your current campaign to increase ROAS.
Some tweaks you can make are:
Placing an ad at the right location is key to attracting quality traffic. So if you have a low ROAS, consider changing the location of your ads.
For example, try placing them on e-commerce sites or social networking sites. Additionally, you can change the layout for your ad, such as converting a banner ad with a pop-up.
Your ad copy should gauge the user’s attention, resulting in the maximum number of ad clicks.
Similarly, your ad copy should be optimized for SEO so that your ad can show up organically in search results.
A helpful tip to follow is to use specific, long-tail keywords that are relevant to your brand.
For more detail, please visit our post outlining and weighing the difference between SEO and PPC.
Targeting 56.16% of all web traffic that comes through mobile phones can boost your ROAS.
If your advertising campaign is limited to desktops and isn’t generating high revenue, you should consider running mobile ads.
Use your ROAS to eliminate campaigns that are performing extremely poorly. Instead, use that money and effort on campaigns that show growth potential.
At the same time, try not to get carried away with spending on ad campaigns. So, place a cap on your budget for PPC campaigns because lots of click-throughs are only beneficial if your budget supports them.
Return on ad spend (ROAS) is a valuable metric that businesses of all sizes can use. And it helps you allocate adequate budgets for numerous ad campaigns.
Globally, 31% of all online users click on ads, which means investing in online advertising has a good chance of increasing leads. But to make the most of your marketing efforts, you need to strategize accordingly.
By regularly tracking your ROAS, you will make informed, data-driven decisions that will eventually boost your revenue.
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Launching an online course is easy once you’ve created your content. Filling your virtual classroom with motivated, paying learners is a little more challenging. Advertising strategies aren’t intuitive no matter how user-friendly a platform might be, and trying to guess at how to market your courses online can feel like you’re shouting into the void. But with a little knowledge and some expert PPC ad strategies, you can get your courses in front of people who are hungry to learn what you teach.
With precise targeting, a professional strategy, budget control, and regular tracking, a PPC ad campaign can transform your course into a thriving program. The key is knowing how to structure your ad campaigns for both clicks and hot leads that convert.
Unlike search engine optimization (SEO), which can take months to gain even a little traction, PPC provides you with immediate visibility right where your target users are hanging out. SEO is important but it’s a long-term game that should be executed alongside PPC ads for the best results. While you’re waiting, PPC generates immediate clicks and drives traffic to your website on the spot.
The best part is that when done right, PPC ads offer a high ROI compared to many other advertising methods. According to the data, businesses earn an average of $2 for every $1 they spend on Google Ads, making PPC a powerful resource for course providers. Here’s everything you need to know about mastering PPC to generate hot leads for your online courses.
1. Understand the learner’s journey
If you want your PPC ads to generate leads ready to buy and not just curious clicks, you need to align your ad strategy with how learners make decisions. Signing up for an online course is not an impulse purchase. It’s a journey that usually starts with curiosity and then moves to research and comparison. When successful, that journey ends with enrollment.
A one-size-fits-all ad won’t work because a student who is just browsing isn’t ready for the same pitch as someone about to hand over their credit card. Understanding the different parts of the funnel, and tailoring your ad campaigns to match each stage, is what will make your course successful. A typical buyer’s journey for learners involves the following stages:
At this stage, your potential students are still exploring broad ideas related to the courses you’re offering. They may not know exactly which course or platform is right for them, but they’re actively looking for options. You’ll need to use a certain type of keyword phrase to capture their attention.
Searches like “learn coding online,” “how to get TEFL certified,” and “language courses for beginners” will work well at this stage. PPC ads in this phase shouldn’t hard-sell enrollment, but rather, focus on positioning your course as credible and informative.
Think free guides, introductory webinars, and blog posts that answer frequently asked questions about your topic. By nurturing your leads’ interests and providing value right off the bat, you’ll have an easier time becoming a trusted brand that people keep in mind as they move deeper into the journey.
During the consideration state prospects know what they want but they’re comparing their options. They’ve narrowed down their choices and are considering factors like price, flexibility, depth, instructor quality, platform, and accreditation. Ideal search terms in this phase are related to specific things that your prospects value or want to achieve like “affordable Python bootcamp,” “online MBA with scholarships,” or “best UX design course with certification.”
Your PPC ads should also highlight unique selling points for your course like “self-paced learning,” “industry-recognized certificate,” or “job placement success.” It’s at this stage where comparison charts, testimonials, and detailed course previews are highly effective. The goal is to show your prospects why your program beats the competition.
At this point, hesitation is minimal. Prospects are ready to sign up but might need one last push. This is where urgency, social proof, and simplicity make all the difference. Ads should feature strong calls to action like “Enroll Today,” limited-time incentives like “Save 20% - Ends Sunday.” This is the perfect time to showcase real student success stories. Landing pages for ads in the decision stage should remove all friction. Avoid long forms and distracting links. Just provide a clear and simple path to enrollment.
Keep in mind that most of your ideal market will encounter your brand multiple times along their journey across different devices and platforms, like Instagram, Facebook, and YouTube. Mapping your PPC ad campaigns to these three stages ensures you’re showing up with the right message at the right time. When done correctly, focusing on all three stages with separate messages will turn casual searchers into qualified leads ready to buy your course.
The backbone of every PPC campaign is your keyword selection. You can write the most convincing ad copy in the world, but if you’re bidding on the wrong phrases you’ll either waste your budget or attract people who have no intention of enrolling.
Your goal isn’t just to drive traffic to your site. You need to drive qualified traffic – people who are serious about learning what you teach and are ready to invest in themselves. This requires targeting a mix of high-intent keywords, longtail phrases, and negative keywords.
Broad keywords like “data science” and “coding” cast a net that’s too wide. You’ll get clicks but most will be from people who are just curious or looking for free resources. To reach people who are committed, you need to target high-intent keywords that show purchase intent. Phrases like “enroll in our data science course” and “online JavaScript certification with ongoing support” will attract users who are actively seeking instruction.
You’ll pay more for high-intent keywords but they deliver more value and higher conversion rates, and that will increase your ROI when you choose the right ones.
Longtail keywords are used to target a smaller pool of people and that’s a good thing. Since these keywords are more focused, the traffic they generate is more valuable. Instead of competing for saturated, general terms like “learn graphic design online,” you target specific phrases like “best graphic design program for working professionals with evening classes.” The people searching with this level of specificity already know what they want, which means they’re more likely to convert.
If you skip targeting longtail keywords you’re leaving money on the table. Data shows that 70% of all online searches involve longtail phrases – it’s just how people naturally search when they know what they want.
Your negative keyword list is how you’ll preserve your budget and prevent wasting money on irrelevant clicks. Without a list of words you don’t want your ads to show up for, you’ll end up paying for clicks that never convert.
Build a negative keyword list of words that indicate someone is looking for something free or irrelevant to your course. For example, words like “free,” “PDF,” “torrent,” and “Reddit” are usually used in searches when someone is looking for shortcuts and freebies. Adding these and similar words to your negative keyword list will filter out tire-kickers and boost ROI by preserving your ad budget for relevant prospects.
Once you have the right keywords that generate impressions, your ad copy has to do the work to get clicks. Your ads need to grab people right away to prevent them from scrolling and possibly clicking on another course provider’s ad. For e-learning, your ads need to inspire people. Instead of talking about your course you want to highlight what your course will do for the learner. This is accomplished with benefit-driven messaging, emotional triggers, and strong calls-to-action (CTAs).
· Benefit-driven messaging. Most course providers list features like “40 hours of video content” and “downloadable PDFs,” but these details aren’t going to capture attention at first glance. In fact, telling learners they’re going to need to sit through 40 hours of content right off the bat might be a deterrent.
Instead, your ads should highlight tangible outcomes like “land high-paying clients with our program,” or “start a new career as a web developer in just 12 weeks.” Benefits speak directly to a person’s goals and aspirations, which is far more compelling than a list of specs.
· Emotional triggers. Emotional triggers are the heart of every marketing strategy, including PPC ads. People make emotional buying decisions and buy courses because they’re chasing a dream, avoiding a fear, or seeking transformation.
Great ad copy taps into these emotions and creates a sense of urgency. For instance, “Don’t miss the enrollment deadline” plays into the fear of missing out, while “Join 10,000 successful graduates” leverages social proof. The right emotional triggers will give people a good reason to act now rather than bookmarking your page and forgetting about it.
· Clear CTAs. Irresistible ad copy includes a direct, compelling call-to-action that tells the prospect what to do next. Generic instructions don’t cut it. “Learn more,” “Click here,” and similar phrases don’t communicate urgency or value. Choose CTAs that direct prospects to sign up for your course. For example, “Start your free trial” and “Reserve your seat today” work well.
In a crowded marketplace where hundreds of course creators are competing for the same attention, clarity and emotion will generate better results. Lead with benefits and tap into people’s emotions and your ad copy will generate serious leads.
Generating clicks from your ads is only the first half of the equation. Once a prospect clicks your landing page needs to convert them to a paying customer or your ad spend goes to waste. Your landing page is like the final pitch where prospective students choose whether to enroll in your course or move on. If your landing pages create any confusion, friction, or distrust, your prospects will lean toward other course creators. On the other hand, an optimized landing page can become a conversion generating machine.
Your landing pages should be simple and clean without too much information. The page content should be specifically designed to direct people to sign up for your course. You want to eliminate navigation menus and sidebars to prevent people from clicking away from the page and getting distracted. Each landing page should have one end goal, either to get sign-ups/purchases or apply for acceptance if required. Too many options will create cognitive overload and reduce the chance of any action.
It’s crucial to include trust elements on your landing pages. When people are thinking about investing their time and money in an online course, they’re naturally going to be skeptical. This is where trust signals can help. Testimonials, instructor bios, refund guarantees, and case studies will help build your course credibility. The goal here is to reassure people that your program is legitimate and worth their investment.
Clicks are important but they’re somewhat of a vanity metric when measured on their own. The only time clicks matter is when you’re looking at your conversion rate. If you generate 100 clicks and get 40 people to enroll that’s much better than generating 1,000 clicks and only getting one person to enroll in your course.
The metrics that matter most are your conversion rate, your cost per lead (CPL), and lifetime customer value (LTV). For instance, you’ll want to track completed signups, demo requests, and enrollments rather than overall clicks.
Cost per lead is a simple measurement that can tell you how efficient your campaign is. For instance, if you’re paying $50 per lead but your average enrollment fee is $500, your margins are good. If your CPL is too close to your revenue then your course might be priced too low or you need to adjust your targeted keywords.
For e-learning, many students invest in more than one course or renew their subscription, which increases their lifetime value to your business. Tracking LTV will help you determine how much you can afford to spend acquiring each new student. For example, if your LTV average is $1,500, it makes sense to spend $200 to acquire each lead. This long-term view helps you maintain profitability and allows you to outbid your competitors who aren’t willing to spend much.
PPC ads require fine-tuning and you can’t just “set it and forget it.” What works today might underperform tomorrow or not perform at all on other platforms. Even small changes can make a huge difference in conversions and that’s why it’s important to test variations. For example, Dell is just one example of a company that saw a 300% increase in conversions from A/B testing.
By running experiments to test different elements you can identify what resonates most with your target audience and optimize your ads based on those results. The most important elements to test are your headlines, CTAs, and images.
· Testing headlines. Your ad headline is usually the first thing a prospect sees. Testing different headlines can help identify which promises resonate most. For example, “Land your dream job” might appeal to people looking for a new career, while “Get certified in 12 weeks” might hook people in a hurry. If you get more conversions from the former, your main audience is likely people looking for a new career, and you can tailor your ads to that group.
· Testing CTAs. A strong CTA can generate more clicks, but what works will depend on your audience. For example, “Get started today” might work for some courses while “Reserve your spot” works better for others. Avoid vague CTAs like “Learn more” that don’t instruct people to take action.
· Testing visuals. Images can put people off or draw them closer. Visuals are processed faster than text and are perceived in a split-second. A single image can make or break an ad. For instance, sometimes a photo of an instructor works well, but other times it’s better to use abstract graphics.
Split testing isn’t optional when you’re running PPC ads. It’s the only way to know which elements make your ads more effective.
At the end of the day, PPC is a great way to build a pipeline of motivated students who want to enroll in your courses. By aligning your campaign with the learner’s journey and optimizing your ads and landing pages for conversions, you can turn your PPC campaign into a reliable growth engine. As the e-learning market becomes more competitive, ads that hit hard are a must.
If you’re ready to stop wasting ad spend and start filling your online classrooms with qualified leads, it’s time to bring in PPC experts. At PPC.co, we specialize in turning clicks into enrollments through high-converting campaigns that deliver qualified leads for online course creators . Contact our team today and let’s build campaigns that fill your classroom.
Pay-per-click (PPC) remains one of the fastest paths to pipeline, but the economics vary widely by industry and are shifting as AI reshapes the SERP. CPCs are up versus prior years, conversion rates have improved in many categories, and lead quality is increasingly a function of how well advertisers feed first-party data into bidding models.
The table below summarizes 2025 search-PPC benchmarks by sector—CPC, conversion rate (CVR), and cost per lead (CPL)—so you can compare what “good” looks like in your niche and calibrate ROI assumptions.
Use these numbers as directional guardrails, then layer in your own close rates and LTV to get to the only metric that matters: profitable growth.
In short, AI is changing the way PPC campaign management is occurring, and it's happening FAST.
ROI ≈ (Close-Rate × Avg Customer LTV ÷ CPL) − 1
Example (legal): if close-rate 12% and LTV $6,000 on CPL $132 → ROI ≈ (0.12×6000 / 132) −1 ≈ 4.45x (345% net). Improve any one input (faster intake bumps close-rate; better routing lowers CPL) and ROI jumps. Benchmarks for CPL/CVR above provide solid starting points. LocaliQ
PPC will keep paying when two things are true:
(1) you can convert and qualify leads quickly, and
(2) your bidding models are trained on the outcomes that actually make you money.
As AI compresses differences in targeting, the edge shifts to first-party data, creative velocity, and value-based bidding.
Treat the benchmarks above as starting points, then rebuild your ROI math from the ground up: ROI ≈ (Close Rate × LTV ÷ CPL).
Contact us today for your customized PPC audit to see how we can improve your search engine marketing ad spend.
