Return on ad spend, or ROAS is a marketing metric that measures the amount of revenue your business earns for each dollar spent on advertising.
Check out our previous blog about ROAS to learn how to calculate it.
When you calculate your ROAS, you are measuring the success rate of your ad campaigns. You may have multiple ad campaigns happening simultaneously. ROAS will give you insight into the success rate of your campaigns. This is a great insight to allow you to modify your budget and marketing strategies.
For example, you have 3 different ad campaigns happening at the same time. You want to boost your ad spend but you’re not sure which campaigns are having the best results based on per dollar spent. ROAS will give you insight on what campaign is more effective based on the dollar spent per ad.
Having this information will allow you to change your marketing strategy and will allow you to change your budgeting around and invest more money toward the ads that are performing well.
Is my ROAS calculation successful?
Well, this is a tricky question to answer. It just depends on the type of business and what product or service is being sold. One thing that does matter in considering an effective ROAS number, is your goal.
The goal of the ad campaign will allow you to determine if your ROAS calculations are successful. Your goals can be as simple as Clicks and Impression count, but the primary focus for ROAS is to see the amount of money coming into your business based on the ad campaign interactions.
Aqui en Vaquero, we understand that your success as a business in the digital world is important. Contact us so we can help you with your online ad campaigns and to calculate your ROAS!