One question that every client has is "How much will this cost me?"
If you have a strategy that’s capable of delivering the right message to the right person at the right time, then you’ve got something that’s worth investing in. Return on ad spend (ROAS) can help you determine if you're on a path toward profitability.
There are several factors that will affect your ROAS, such as the cost per sale, the price of your products, your overhead costs, and the margin of your business. In the end, your ROAS is a helpful tool for providing insights into the performance of each ad campaign and what to do next. When you take the time to know your numbers, you're better able to make informed decisions and manage future campaigns.
Use the calculator below to figure out the best ROAS goals for your business.
Without knowing your Target ROAS, you won't be able to set realistic benchmarks for your marketing strategies to measure if you’re on the right track with your advertising goals.
Whether you're just getting started or you're a seasoned entrepreneur, it's important to have a good idea of what your profit margin and budget is going to look like.
If you’re a business owner wanting to improve your profits, you have to be realistic about your budget. It’s too easy to think that if you just spend a little more, you’ll generate great returns. But it doesn’t quite work like that.
When you’re crunching the numbers to determine your return on investment, it’s important that you can define your advertising costs and overall profit margins.