RETURN ON AD SPEND (ROAS) DEFINITION AND FORMULA

Find below the 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 a 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.

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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 understanding how other channels play a key role to support the channels that bring the last action before conversion.

OTHER KEY METRICS

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RETURN ON AD SPEND (ROAS) DEFINITION AND FORMULA

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best digital marketing metrics

best digital marketing metrics