Companies of all sizes can calculate the ROAS of their campaigns to measure and evaluate whether the efforts applied generated the expected result, to know what can be done again and what should be discarded.
So, let’s suppose you’ve decided to open an e-commerce business and made an initial investment of R$100,000. Within this amount invested, you must consider employee salaries, product inventory, etc.
ROI can also be applied to measure the results of a specific investment , such as a Google Ads from departmental marketing to all-employee marketing or a content marketing strategy , but never forgetting that all expenses incurred by the company when investing in such a strategy must be included in the costs.
ROAS is used to measure only advertisements made in paid media, that is, it only takes into account advertising expenses, without calculating extra costs as is the case with ROI.
You can, for example, analyze the ROAS of seasonal campaigns such as Black Friday, Mother’s Day, Father’s Day, Children’s Day or the launch of a new product or service.
how to calculate roas
How much did you sell through your ad?
What was your 3 content marketing strategies to support seo success or income from a paid media campaign?
You can find this out by calculating your ROAS
But when it comes to metric calculations, most people think it’s a complicated process. In fact, there are several metrics, and the formula for some can be more complex than others.
However, in the case of ROAS, it is very simple. Just divide the revenue america email your campaigns by the cost of the ads. If you want to know the percentage, multiply the result by 100.
It looks like this:
ROAS = revenue ÷ cost x 100
Check out 3 practical examples
Positive ROAS
Let’s assume you invested 15 thousand reais in campaigns and obtained a revenue of 45 thousand. According to the calculation, your ROAS would be 3 or 300%.