ROAS stands for “return on advertising spend” and is a KPI that measures the return on advertising investment.
Through this indicator we can obtain the percentage of income received according to the investment made in a given campaign. It is based on ROI , another return on investment KPI, and both are very effective in quantifying the success of digital marketing actions.
What is it for?
Through ROAS you can measure and optimize the budget of your campaigns. You can analyze each one and, based on the results, boost the most profitable ones.
This way you can set monthly or quarterly goals and understand how your advertising budget is spent.
With ROAS you can visualize the relationship between cyprus whatsapp resource investment and the conversions you achieve with your strategy and keep track of the CPC "cost per click" to increase investment if necessary.
This is an important indicator to accurately measure costs and profits. For example, if your conversion rate is high, but your ROAS is low, then you are losing money.
This situation can be due to several factors, but it is advisable to review the attribution model chosen for your campaign and optimize the website to which the ads are directed.
Through ROAS we can obtain the percentage of income received according to the investment made in a given campaign.
Why ROAS is important
The main indicators for measuring the success of a campaign include ROI (return on investment), CTR (click-through rate) and CPA (cost per acquisition); but these KPIs are not enough.
The idea is that you can complement all the indicators to obtain more detailed and specific information about the results of your marketing actions.
For example, the click-through rate (CTR) value, which does not report whether any sales were made, can be supplemented with ROAS to understand how much the return on investment was and thus be able to measure interactions with the ads and calculate revenue.
ROAS is primarily used in Google Ads campaigns to quickly identify where to allocate budget and evaluate results for better future investment.
It is a key indicator for small businesses on a tight budget.