When starting a campaign and preparing ROAS, we must therefore adopt an appropriate strategy that will take into account the context of the campaign, its components as well as the activities of the competition and the expectations of users. The combination of these factors will give you the best result. How to calculate ROAS See the pattern First, a bit of theory. We abbreviate ROAS as Return On Ad Spend,return of advertising expenditure. Let’s say we spent on advertising.
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In turn, the income obtain from purchases amount to PLN . We already know that we have earn, but what is the actual ROAS Here is the formula for ROAS: (Revenue Cost) x So for this example it will be: ( ) x . However, it should be not right away that Jamaica Email List a high ROAS does not always mean that we have achiev a satisfactory personal income. This indicator does not take into account the cost of manufacturing or purchasing the product or our margin. So let’s say that the cost of production is as much as PLN , and our margin is PLN . We compensat for the expenses, but we did not earn – we broke even. Of course, the low ROAS is also alarming.
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If it falls below , then we pay extra for the sale, instead of making money on it. This clearly shows that in order to determine a favorable ROAS level, we ne to conduct a thorough analysis of our business – so that our activity is as profitable as possible. Only BU Leads when we do this can we aim to increase the rate of return on ad spend. How to achieve a “good” ROAS? So what elements should be taken into account when preparing a strategy to achieve a satisfactory ROAS and at the same time allow the development and scaling of the campaign? Here they are.