ROAS stands for Return on Ad Spend. It is a metric to describe how much revenue you get in return for your advertising budget. If your ROAS is 800%, it means that in return for the amount of money you spend on ads you generate 8x its revenue.
Calculate your Return on Ad Spend (ROAS) with this free online calculator. Simply enter the required data points and click calculate. You’ll get an instant overview of your campaign ROAS as a result.
Simply follow these four easy steps to calculate your Return on Ad Spend:
The Return on Ad Spend formula is as follows: ROAS = 100 * total ad revenue / total ad spend. If you can’t measure the direct sales revenue, you can use this formula instead: ROAS = number of ad conversions * average number of sales conversion * average sales price – total ad spend.
A good ROAS (Return on Ad Spend) indicates that your advertising campaigns are generating sufficient revenue relative to the amount spent on ads. As a rule of thumb, your ROAS should be at a minimum of 400%, but better at 800% or above. The higher your ROAS, the better.However, what constitutes a "good" ROAS can vary based on several factors:
1. Industry Standards:
2. Business Model:
3. Campaign Objectives:
4. Cost Structure:
5. Competitive Landscape:
6. Customer Lifetime Value (CLV):
1. Enter Total Revenue:
2. Enter Advertising Cost:
3. Calculate ROAS:
Once you have entered both the total revenue and advertising cost, click on the "Calculate ROAS" button.
It will also compute the ROAS percentage, which is the ROAS value multiplied by 100.
1. Improve Targeting and Segmentation
2. Enhance Ad Creatives and Messaging
3. Optimize Landing Pages
4. Implement Conversion Tracking and Attribution
5. Adjust Bidding and Budgeting Strategies
6. Leverage Remarketing and Retargeting
7. Monitor and Optimize Campaign Performance
8. Improve Website Speed and User Experience
9. Experiment with Different Ad Formats and Channels
10. Focus on Customer Lifetime Value (CLV)