ROAS – SushiWP

ROAS stands for Return on Ad Spend, a metric used to measure the effectiveness of advertising campaigns. Imagine it as a way to figure out how much bang you’re getting for your buck when you spend money on marketing. It tells you how much revenue you earn for every dollar you spend on advertising.

Calculating ROAS is pretty straightforward: you divide the revenue generated from your advertising by the total cost of that advertising. For example, if you spend £100 on a digital ad campaign and it leads to sales of £300, your ROAS would be 3:1. This means for every pound you spent, you got three pounds back in revenue.

Understanding your ROAS can help you make smarter decisions about where to allocate your marketing budget. It’s a critical tool for businesses to assess which advertising strategies work best and which ones might need tweaking or even discontinuing.

ROAS is particularly valuable because it focuses solely on the revenue generated from ads, giving you a clear picture of how directly your advertising efforts are contributing to your business’s bottom line. It’s like checking the efficiency of each marketing engine you have running and making sure you’re driving your business forward in the most profitable way.