What Is Return On Ad Spend?

September 16, 2021

When you are trying to develop and improve your company you need to focus a lot on the marketing strategy you’re using. This is so important to make the most of, and there are a lot of things that play a part in this right now. Try to make sure you think about the changes you need to make to your marketing to be more effective and successful.

It is clear that the marketing and advertising you choose might have varied results, and this is what makes return on ad spend (ROAS), such an integral metric for you to measure. When you are working closely with a digital marketing agency in Kent, you will be more well-versed in being able to study and understand ROAS, and use it to your advantage. 

What is ROAS?

Simply put, return on ad spend is a marketing metric that is used to determine the amount of recent you generate from every pound you spend on advertising. It’s kind of like the digital equivalent of ROI, and it can be used to focus on the entire marketing budget, or on individual marketing components and campaigns. It’s important to make sure you are able to make the most of this as much as possible, and there are plenty of ways of achieving this.

How to Calculate ROAS

Calculating accurate ROAS is so important because you need to be clear about what you are spending and where you need to improve. In order to calculate return on ad spend effectively keep in mind ROAS = Revenue generated / Money spent. This simple equation will help you to figure out how much you are spending on ads versus how much you are actually making as a result. This is something that you have to get right, and it can save you plenty of money and time in the future.

Why ROAS is so Important

There are plenty of reasons why you need to figure out ROAS in your business, and one of the key ones is to make sure you develop a more effective advertising campaign, earn more money, and be a more efficient and successful business. So you need to try to look at some of the best ways of being able to achieve better ROAS, and things like improving ad placements, refining keywords, and using audience targeting can all help.

Business marketing is like your bread and butter these days, and you need to try to refine it as much as you can. Statistics suggest that email marketing ranks as the most effective, with businesses making an ROI of $40 for every $1 spent. It is vital to make sure you understand what you are spending on your marketing, and what you are making from it as a result. Team up with a professional Kent digital agency and spend time trying to work this out as much as possible. 

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