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ROAS: What is it that all marketers are reporting?

ROAS: So what is it that all of us marketers are talking about and insisting on?

We are the Webcookie and today we will explain what ROAS is, how you can calculate it and how important it is for the functioning of your ads.

Our company specializes in internet advertising, social media management and website promotion.

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What is ROAS?

ROAS is an important performance indicator in digital marketing. It represents the Return on Advertising Spend and is used to measure the rate of return on the cost of advertising. ROAS gives a picture of how much each euro spent on advertising contributes to the company’s revenue.

Its calculation formula is simple: ROAS = Net Revenue / Total Advertising Value Spent. So if a business has a ROAS of 5:1, this means that for every 1 euro spent on advertising, it earns 5 euros in net revenue.

ROAS helps businesses to evaluate the effectiveness of their advertising campaigns and adjust their strategy accordingly. A high ROAS value indicates that the advertisements are well received and are successful investments. Conversely, a low ROAS indicates that the ads may not be as effective as one would expect.

ROAS is not only a performance indicator, but also a decision-making tool. Based on this, marketing professionals can understand the effectiveness of their advertising campaigns and adjust their budgets accordingly. In addition, they can identify which sectors or advertising channels provide the greatest return and focus their resources there.

ROAS is a tool that helps businesses make meaningful marketing decisions, facilitating the detection of successful and unsuccessful campaigns and the development of strategies that will lead to superior results.

How do I calculate it?

ROAS (Return on Advertising Spend) is calculated by simply dividing the net revenue generated by an advertising campaign by the total amount spent on advertising. The equation is as follows:


For example, if the net sales from an advertising campaign amount to 5000 euros and the total value of the money spent on advertising is 1000 euros, then the ROAS will be:


So, the ROAS in this case is 5:1, which means that for every €1 spent on advertising, €5 in net revenue is generated.

It is important to bear in mind that net revenue must take into account the cost of the products or services sold and all related costs, such as advertising and any other campaign-related costs.

How do I measure the results of my internet ads?

Measuring the effects of online advertising can be done through various metrics and metrics. Follow these steps to measure and analyse the results of your internet advertising:

Setting Objectives

Set your goals for the ads. These can be sales, leads, newsletter subscriptions, increased website visits, etc.

Choice of Metrics

Choose the appropriate metrics for each target. For example, you can use metrics such as impressions, clicks, click-through rate (CTR), conversion rate, profit per click (ROI), etc.

Set up Tracking Tools: integrate tracking tools such as Google Analytics, Facebook Pixel or other data analysis tools to monitor user actions on your website after the ads are shown.

Data logging: collect data for the metrics you have selected. This can be done through the monitoring tools you have integrated.

Analysis and Reports: Analyze the data you collected and generate reports on ad performance. Judge performance against your set goals.

Improvement and Optimization: Based on your results and analytics, adjust your advertising campaigns to improve their performance. This may include changing advertising channels, improving the text or virtual display of ads, etc.

In summary, measuring the results of online advertising requires systematic, analytical and data-driven action. With proper monitoring and analysis, you can continuously improve your ads and achieve better results.

Are you interested in increasing the ROAS of your ads?

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