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ROI and Optimizing Ads

Everyone wants a good ROI (return on investment), but what does that mean to the laymen?  If you run a small business you want to get as much profit out of the business as you honestly can.  So if you sell hot cocoa for $1.00 a cup, the cost of the cup, cocoa, and advertising should cost less than $1.00 per cup to make a profit.  Now this is where the strategy comes into play.  Let's say that you can get the cups for .50 cents each normally, but if you buy 1000 cups you can get them for .30 cents each.  Your business savvy would come into play to determine if you can sell 1000 cups of cocoa, and if you have all the other supplies to make that happen.  If it is worth your while to buy the 1000 then it could save you money in the long run.  If you can only sell 100 cups, then you have overspent and you will be getting a smaller ROI that if you had only purchased 100 for .50 cents. 
When factoring the optimization of advertising online you need to consider your ROI and also what your target market is to make sure you are achieving your goals.   

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