It is very likely that you advertise online for your business and you do it because you want to get better leads and you invest in it because you want to experience an increase in sales. As a business person, you want to make sure that you get a good return on your investment and so you always want to make a price comparison between the money that you make and the money that you spend on your advertising. It just makes good business sense and it is a very important metric that all businesses should use so that they can properly assess their advertising expenditure and performance. This return on your advertising spend is called return on ad spend or as it is most commonly known, ROAS.
If you are still a little bit in the dark when it comes to ROAS Marketing, then let me explain that it is a very worthwhile marketing metric that you should be using to calculate the money that you make on the promotion of your products and services. No business owner wants to be spending more on advertising than they actually take in and so it is important that you know what the figures are. If you are not really sure why it is that you should be measuring your return on ad spend, then maybe the following benefits can help you to understand it a little better.
- It identifies scaling opportunities – It is important for any business to be able to establish and to evaluate how effective each advertising campaign is so that it can better figure out which advertisement’s are providing results and which are not. This gives you a better idea of where you should be spending your advertising and marketing funds and once you can figure out which campaign works best and gives you the best return then this is where you can direct more of your funds.
- It optimises your campaign budget – Once you are able to figure out how well it’s kind of advertisement is performing then this allows you to spend more wisely on the advertisement that works best for your business and that creates more sales and therefore higher revenues. This means that you get to identify which advertising campaigns you are spending too much money on because they are not providing you with the necessary revenue expected. It means that you can then reduce your various budgets, book more holidays and it will help to protect your overall business from any losses that you experienced before.
It is all about being able to refine your overall marketing strategies and so using ROAS allows you to figure out which individual campaign is more successful than the others. With this kind of information in your hands, you can make much better decisions when it comes to your new marketing plans. It will help to keep your business more profitable and it will certainly increase your market share. To be able to increase your ROAS, you should try to target high interest audiences and create better advertising campaigns.