What is ROAS?
by Courtney
ROAS highlights your advertising strengths and points out weaknesses.
How is ROAS calculated?
ROAS is calculated by dividing the revenue generated from a campaign by all the costs involved with the campaign. To explain it simply, ROAS pinpoints how much revenue is generated for every pound spent on an advertising campaign.
For example, if you spent £1000 on a campaign, and you work out that it generated £5000 in revenue, your ROAS would be 5. This would mean that every pound spent on advertising generates five pounds in revenue.
Revenue ÷ campaign costs = ROAS
Whether numbers scare or excite you, ROAS is an effective advertising metric to calculate the performance of a campaign.
But let’s not get ROAS confused with ROI (return on investment) because they are two very different metrics.
ROI accounts for ALL business expenses whereas ROAS only accounts for the advertising costs.
It’s also important to note that there are factors that can impact ROAS. These factors include your message, advertising channel, and your target audience. And it’s these factors that you’ll need to monitor to optimise your advertising for success.
If you understand your target audience very well, it will allow you to develop creative messaging that will resonate with them. Data scientists like AudienceLab can help point out who your ideal audience is based on demographics and interests.
Additionally, choosing the right advertising channels can determine your ROAS. Not every channel will deliver your message powerfully. You need to select a media channel that your audience uses and one that is appropriate for your message.
We understand the performance and reach of all channels, from outdoor, digital, social, and media, and guide businesses and marketers to the right channels for success.
By consistently calculating your campaign ROAS, businesses can make informed advertising decisions and ultimately save time and money.
Our Services
We offer the lot and won’t waste your time, energy or money.
Our work
Check out our Instagram for our latest work and all things #cns.
Contact Us
Call or Email
0800 031 6647
[email protected]
Head Office
CNS Media, Spire Walk, Chesterfield. S40 2WG
(Pre-arranged appointments only please)
