ROAS

Return on Ad Spend (ROAS)

Find the most profitable way for your business to acquire more customers at the lowest cost by utilizing AI driven bidding strategies.

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What is ROAS and How Does it Help Me?

As a business owner, you're always looking for ways to increase revenue and ROAS is a metric that can help you do just that. ROAS measures the amount of revenue your business earns for each dollar it spends on advertising. In other words, it's a way of tracking how effective your advertising campaigns are in terms of generating revenue. The higher your ROAS, the more efficient your campaigns are and the more likely you are to see a positive return on investment.

$5
Revenue for every
$1
Spent on Ads

Example ROAS

500%

What Can Affect ROAS?

There are a number of factors that can affect your ROAS, such as the type of products or services you're advertising, the platforms you're using, and the targeting options you've selected. By understanding how these factors impact your ROAS, you can make adjustments to your campaigns to maximize efficiency and ensure that you're getting the most bang for your advertising buck.

Product Type

What you're selling matters

Platform Choice

Where you advertise

Targeting

Who sees your ads

Shouldn't I use CPA Instead of ROAS?

We all want our campaigns to drive sales and leads, but it's important to remember that not all conversions are created equal. A common metric used to determine the success of a paid search campaign is CPA, or cost per conversion. While very useful for measuring volume of conversions, it only measures the average cost associated with any one, single action. This doesn't take into account the value of that conversion or how profitable this conversion is for your business.

CPA (Cost Per Action)

Measures: Volume of conversions only

ROAS (Return on Ad Spend)

Measures: Revenue & profitability

Why ROAS Matters

Robust ecommerce businesses know that a focus on ROAS (return on ad spend) is essential to profitable growth. By understanding how each of their ad campaigns contributes to the bottom line, they can make informed decisions on where to invest their ad dollars. Combined with customer lifetime value, insights from ROAS across all campaigns inform future budgets, strategy, and overall marketing direction.

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