This is my calculation which I use when I want to see if there is a business case behind a media investment for my clients or my own marketing initiatives. There are so much information available today, and from that you can manually calculate predictions and potentials before you choose to invest in a specific media, channel or campaign. Armed with the right specific, relevant numbers for your business and some industry averages you can create a hypothesis for the potential for an investment if you are unsure, or just want to make a calculation in terms how you should re-distribute your media budgets and what the potential could be. Marketing today, merges business savviness and analytical skills. There is just a question of time (I guess there already is someone out there who has turned this into a formula, if not, that someone could make some nice bit of cash on a software for this, collecting data from advertisers, merged with some kind of ad score to calculate predictions based on data available).
This article will give you an insight into what AdWords is and give you the basic understanding of how it works. This article is written for a beginner, and only covers the basics with the purpose to explain the fundamentals AdWords is an clever always-on tool in every successful online marketing strategy to push sales, leads and targeted traffic to your website, offering full transparency in terms of the budget you invest. On top of that it will give you some really valuable insights for your SEO and content work.