RETURN ON AD SPEND (ROAS) DEFINITION AND FORMULA

Find below Return on Ad Spend (ROAS) definition and the correct formula to calculate ROAS by eDigital.

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RETURN ON AD SPEND (ROAS) DEFINITION

Return on Ad Spend (ROAS) definition: ROAS is marketing metric that measures the profits made by and attributable to a specific advertising campaign. It measures the efficacy of a digital advertising campaign ROAS helps online businesses evaluate which digital marketing programs, campaigns, channels and methods are generating sales to improve future digital marketing advertising planning and budgeting.

RETURN ON AD SPEND (ROAS) FORMULA

Return on Ad Spend (ROAS) formula: Revenue from Advertising Source / Cost of Advertising Source.

RELATED: THE ONLY  12 DIGITAL MARKETING METRICS YOUR BOSS CARES ABOUT

WHY RETURN ON AD SPEND (ROAS) IS AN IMPORTANT METRIC TO TRACK AND MEASURE

  • It is important to have clear what channels return the most of your Digital Advertising dollars. So you can recalibrate your budget split per channel.

TIPS WHEN CALCULATING, MEASURING AND TRACKING RETURN ON AD SPEND (ROAS)

  • Calculate ROAS per Digital Marketing Channel: SEO, SEM (Adwords), Social Media, Affiliates, Email Marketing, Display Advertising, etc.
  • Multi-channel attribution modelling is key to understand how other channels play a key role to support the channels that bring the last action before conversion.



OTHER KEY METRICS

RETURN ON AD SPEND (ROAS) DEFINITION AND FORMULA

was written by…

mauricio escobar eDigital photo close up circle digital marketing consultant seo expert sydney speaker social media trainer instructor

Mauricio Escobar is a Digital Marketing Specialist (Masters in Marketing), Certified Facebook/Adwords Professional, Certified SEO Consultant, Top Linkedin Influencer (6k connections), StartUp Investor, Writer, International Speaker. 15+ years experience optimising Digital Marketing Campaigns. Worked for top brands such as Realestate.com.au, News Limited, The Athletes Foot, Thrifty, NSW Government. Mauricio also trains marketers via Strategy WorkshopsTraining Sessions. His popular Digital Marketing Plan & Social Media Plan templates downloaded by thousands. Mauricio travels the world (37 countries visited) while teaching Digital Marketing or completing creative photography briefs and conceptual photography assignments. Mauricio speaks three languages, football fan, latin dancer. Subscribe to Mauricio’s e-newsletter connect on LinkedIn Instagram Facebook

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By |January 20th, 2018|measurement|