This means that you obtain! a return of 20 cents for every 1 real invest!. In other words, a loss.
Although it is a simple calculation, it helps you understand whether the investments you are making in advertising are bringing profits or losses to your business.
This way, you are not left in the dark and can optimize your campaigns and your budget, investing only in campaigns that are working.
ROAS on Facebook Ads
The calculation in Facebook Ads can be done in two ways:
The first is to know what the minimum ROAS is for a campaign, considering your objectives and budget.
According to Facebook itself , if you want your $100 budget to from transaction marketing to customer relationship marketing at least $110 in purchases (i.e. a 110% return), set your ROAS control to 1.100.
The second method is us! to calculate ROAS by sales. In other words, to find out the return or revenue for each sale, considering the expenses involv!.
Therefore, simply divide the conversion value of the purchases the 6 best ways to improve loading spe! and user experience in seo by the total expenses.
ROAS in Google Ads
ROAS on the Google Ads platform can be work! with four types of campaigns. They are:
Search Network:
Display Network: ads that appear on banners position! on websites register! on the Google Ads platform .
Google Shopping: Ads that appear in Google Shopping results
App Campaigns: Here, the ROAS calculation depends on the number of downloads and installs of an app for a certain period.
In both Facebook Ads and Google Ads, it is possible to define a target ROAS, that is, how much return you expect to obtain from a given investment.
What is the ideal ROAS?
The return on investment in advertising can be very relative, as the value america email vary from company to company, taking into account the financial health of each organization.
But what you ne! to keep in mind is: if ROAS is greater than 1, it means profit. If it is less than 1, you made a loss. But if it is equal to 1, you got even. In other words, neither profit nor loss.