As a writer, I’ve never been very good at math. I know … shocking.
Most marketers can relate because as a bunch, we tend to be better at English and history than math and science.
However, as a marketer, we need to be able to analyze data and calculate the effectiveness of an article or campaign, even though math might not be our strong suit.
One of the calculations we need to run and metrics we need to track is return on ad spend (ROAS).
Below, let’s review ROAS. In this post, we’ll discuss what ROAS is, how it’s different from ROI, and how to calculate it.
What is Return on Ad Spend (ROAS)?
ROAS (return on ad spend) is a metric which measures the revenue that’s generated compared to every dollar of an advertising campaign. For example, let’s say you made $10 for every $1 spent on an advertising campaign. That means your ROAS for that campaign is 10:1.
Ultimately, ad spend is meant to measure the effectiveness of a specific ad campaign, not your overall ROI — more on that below.
Besides ROAS, you’ll most likely measure other metrics such as click-through rate and ROI. By measuring multiple metrics, you’ll get a more accurate view of your results.
Of course, measuring performance and tracking analytics is an important part of any marketing campaign.
By tracking performance, you can improve and iterate on your marketing techniques. Plus, data is one of the only ways to truly prove that your department brings in…
