Advertisers while doing search engine marketing, continue to calculate a return on their ad costs irrespective of the fact that tracking is in place. So why not deliberately put tracking in place to have a better PPC campaign management? With Google analytics, you can get this revenue tracking free and then you can merge it with AdWords to establish a Return on Investment within AdWords interface.
The ROI optimization process involves setting a goal for the ROI as its first step. This will give a clearer picture of which key terms give a profitable ROI and which go negative on the ROI scale. This way, you can easily remove ROI negatives if you are unable to convert those into positives.
Having a goal set for the ROI, it becomes easier to manage keywords and keyword clusters using basic optimization logic. You can take this optimization process a step further by combining it with CPA optimization logic and thus manage gross profit margins of your pay per clicks.
Like every product has its own value, every keyword has its own average order value (AOV) and it is obvious that with a higher AOV, every advertiser would want to maximize his sales on keywords he used for his pay per click campaign. In fact, if you shift your campaign budget towards terms having highest AOVs, it will maximize your ROI.
The basic idea behind this is to get business intelligence that can help make a successful PPC campaign management. If you don’t have that business intelligence then you are wasting money. But why waste money when you have a solution ready and that too for free.