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Return On Ad Spend

If you can’t measure it, how can you manage it?
What if, you knew you for every $1 you spent you got 10X back?

OK, it’s a loaded question; but its not unrealistic by any stretch. One of our clients averages $10.57 in revenue for every $1 they spend on pay per click advertising; Day in Day out.  In relation to their margin its great, and it wasn’t easy.

Before we start counting the Benjamins, we first need to develop the foundation of your advertising campaign. Often times I have to be the bad guy and tell you the things your doing wrong, or highlight areas that need improvement. Frankly tough love is never easy; but over time we will fix the broken and hone in on the specific elements that create leads and sales for your business. We will determine what ad copy, offers, products, keywords, locations, bid prices, landing pages, all provide the best ROI. It may take time; but anything worth anything always does. 

Success starts first with research, ideas, dedication and hard work. Mistakes are always part of getting better, some will be made, no one is perfect, don’t take your eye off the ball, honey pots will be found.  We strive to have a thorough understanding of your business, your goals, and your success metrics. We need to know the intimate details about your business operations and your industry. Starting with an advantage means understanding  not only your business products,  but your customers, their buying cycle, and their lifetime value.

Given time to optimize with adjustments to keywords, landing page content with a 900% ROAS is not out of the question. Our average ROAS is currently 1057% across all e-commerce clients.


 

Return On Advertising Spend, (ROAS), is a metric that measures the efficiency of a digital advertising . Calculating return on ad spend is important; it gives you an easy to understand value for profitability. Whether you’re looking at entire campaigns or particulars like keywords, ROAS can give quick insight into efficiencey.

 

ROI And ROAS How are they different?

ROI ( return on investment) and ROAS (return on ad spend) are similar yet different, but some marketers use these terms interchangeably. ROI measures the profit generated by ads relative to the cost of those ads. It’s a business-centric metric that is most effective at measuring how ads contribute to an organization’s bottom line.

ROI = profits-costs x 100 / costs

ROAS measures gross revenue generated for every dollar spent on advertising. It is an advertiser-centric metric that gauges the effectiveness of online advertising campaigns.

ROAS = revenue from ad campaign / cost of ad campaign

With ROAS, marketing is considered a necessary cost of doing business vs. ROI, where marketing is an investment to grow a business’s profits incrementally. While using both metrics in tandem is useful, the pendulum is swinging back from the widespread use of the ROAS-focused model in digital advertising, to a more rigorous ROI-focused model.

Our top priority is always on results, the long-term growth, success of you and your business. We have assembled a selection of  technologies that when put to together, leverage consumer behaviors and ensure your message reaches your customers at the right time. We would love to find more about your business and ways to do better. Give us a call for your free digital blueprint.

 


Peerless Digital Marketing creates integrated web presence strategies. Multi-screen strategies that help businesses engage with potential customers at the right time and place in the online world. 

Specialties: Internet Marketing & Digital Media Strategy | Google Adword Certified | PPC | Google Analytics | Google PLA-Merchant Accounts | Programmatic /RTB Display| Ad Trafficking | Social Marketing | Video Ads | Email Marketing | Web Site Conversion Strategies | Adobe Creative Suite | WordPress