It is very important to understand return on ad spending to find out whether your marketing campaigns was successful or not. Return on ad spending is a key metrics that you need to find out to measure how effective your ads or marketing campaign were in terms of revenue generation. Let’s imagine you spent $1000 to advertise and market your product and generated $10,000 in sales, your return on ad spending is 1000 percent. When you know this metrics, you will be able to analyze the profitability of your marketing campaigns. When you understand return on ad spending, you can optimize your ad spending and maximize your returns.
Understanding Return on Ad Spending
- Thread starter Mika
- Start date
Return on ad spend literally means the amount of sales or revenue you generated from your ads and it's simple to understand with a mathematical formula like thus:
ROAS = Sales - Ad Spend.
Whatever amount of money you make, subtract it from the money you spend running the adverts it gives you a return figure on your ad.
The Ideal ad is one that has a high ROAS, and it can be a grind to figure it out but with constant tweaking of the ad for example changing the copy, images and demographics can all have effect on your Return on Ad Spend(ROAS)
ROAS = Sales - Ad Spend.
Whatever amount of money you make, subtract it from the money you spend running the adverts it gives you a return figure on your ad.
The Ideal ad is one that has a high ROAS, and it can be a grind to figure it out but with constant tweaking of the ad for example changing the copy, images and demographics can all have effect on your Return on Ad Spend(ROAS)