Calculates the amount of revenue a company receives for amount that spent on advertising campaign.
ROAS(Return on Ad Spend) Formulae
Return on Ad Spend = Gross Revenue ÷ Cost of Campaign
For example, A shopping company spends $2,000 on an online advertising campaign in a single month.
In this month, the campaign results in revenue of $10,000.
Therefore, the ROAS is a ratio of 5 to 1 (or 500 percent) as $10,000 divided by $2,000 = $5.
Tips to Improve ROAS(Return On Ad Spend)
Here are a few ways that you can reduce your spending on PPC ads and improve your return on ad spend:
1) Use our ROAS calculator to see how much you can spend on your adversting campaign.
2) Select Advertising Platform
3) Define your goal
4) Research your target audience
5) Do proper keyword research
6) Use negative keywords lists
7) Do keyword group segmentation
8) Write killer ad copy
9) Have clear call to action
10) Create effective landing page relevant to Ad
11) Use geo-targetting
12) Test different Ad positions
13) Test different Ad-copies and landing page combinations
14) Evalute Quality score
15) Remove Ad copies with low CTR
16) Remove non-performing landing pages
17) Remove keywords with bad quality score
18) Increase budget for top performing keywords
19) Optimise your bid management strategies
20) OPtimise your campaign for conversions not clicks
Keep the tips above in mind for getting the most out of the insights you gain from measuring ROAS.