Calculating ROAS can help businesses analyse the effectiveness of an individual ad campaign

New Ideas in MarketingEssential news for marketers, summarised by YouGov
July 03, 2020, 1:00 PM UTC

ROAS (return on ad spend) is a metric that helps brands measure the revenue that they generate from every spending on any advertising campaign.

This piece gives detailed insights on return on ad spend (ROAS) and how is it different from return on investments (ROI).  While ROAS measures the effectiveness of a specific ad campaign, ROI measures the overall return on those campaigns.

For accurate ROAS measurements, marketers need to consider different costs like cost of the ad bid, labour cost, vendor costs and affiliate commissions. Non-ecommerce businesses can leverage CRM software like HubSpot along with its ads software to track revenue generated from leads.

The author suggests marketers can lower down their ad spends and review their ad campaigns to improve their ROAS. They should also optimise their landing pages and rethink their negative keywords.

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[3 minute read]