{"id":11838,"date":"2022-03-31T08:53:02","date_gmt":"2022-03-31T07:53:02","guid":{"rendered":"https:\/\/www.nexoya.com\/?post_type=blog_posts&p=11838"},"modified":"2022-03-31T09:06:46","modified_gmt":"2022-03-31T08:06:46","slug":"how-to-increase-your-ad-campaign-roas","status":"publish","type":"blog_posts","link":"https:\/\/www.nexoya.com\/de\/blog\/how-to-increase-your-ad-campaign-roas\/","title":{"rendered":"How to Increase your Ad Campaign ROAS"},"content":{"rendered":"\n

Are you ready to break the Return-on-ad-spend (ROAS) equation down and determine what underlying components can enhance your performance?<\/p>\n\n\n\n

Ad campaign ROAS is a great metric to track as it gives you an overview of your input and outputs. Adding this metric to your digital marketing campaign’s performance<\/a> is an excellent strategic move; CPC, for instance, doesn\u2019t indicate the quality of traffic and leads you are getting therefore is often referred to as a vanity metric.<\/p>\n\n\n\n

By watching your ROAS closely with the rest of your KPIs, you can quickly point out weaknesses in your strategy and implement your changes rapidly. But be careful, only looking at your ROAS can also be dangerous to a certain extent, as you „just“ look at the short-term bottom line.<\/p>\n\n\n\n

What is ROAS?<\/h1>\n\n\n\n

The ROAS or Return on Ad Spend is a marketing metric that measures the performance of your digital marketing campaigns. It has components:<\/p>\n\n\n\n

  1. Your sales made via advertising<\/li>
  2. Your Ad Spend<\/li><\/ol>\n\n\n\n

    To summarize it best, the ROAS is how much revenue you make per every dollar spent on your ads. <\/p>\n\n\n\n

    By tracking your ROAS, you can also evaluate, track and compare your digital marketing channels. It will quickly help you determine which are best performing and adjust your ad campaigns strategies<\/a>.<\/p>\n\n\n\n

    \"increase<\/figure>\n\n\n\n

    How to calculate your ROAS<\/h3>\n\n\n\n

    ROAS = Total revenue \/ Total ad spend<\/p>\n\n\n\n

    For example, if your total sales are worth $4,000 and you spent $400 on advertising, your ROAS would be 10. <\/p>\n\n\n\n

    4,000 \/400 <\/p>\n\n\n\n

    = 10. <\/p>\n\n\n\n

    For every $1, you spent on advertising, you have earned $10 back.<\/p>\n\n\n\n

    We are often asked: what is a good ROAS? <\/h3>\n\n\n\n

    And frequently, it depends heavily on the industry.<\/p>\n\n\n\n

    The role of advertising is to overall generate revenue as a business. But what if I told you that it also helps make better marketing decisions<\/a>? You might already know it, but looking at the ad campaign ROAS only as a revenue generator is a great mistake because it can guide you further: it can help you change your advertising model.<\/p>\n\n\n\n

    How?<\/p>\n\n\n\n