As an advertiser, it’s important to know how to calculate Return on Advertising Spend (ROAS). The ROAS indicates how much revenue you generate for each advertising euro spent. However, it is not only important to calculate ROAS, but also to find the perfect ROAS for your business goals.
Here are some steps that can help you do that:
- Define your goals: Before you start searching for the perfect ROAS, you need to define your business goals. Do you want to generate more sales, increase your brand awareness or win new customers?
- Consider your industry and competition: It is important to know what ROAS numbers are common in your industry and among your competition in order to set realistic goals.
- Calculate your current ROAS: Calculate your current ROAS to see where you stand and how much room there is for improvement.
- Test different ROAS targets: Test different ROAS targets and regularly check how well your campaigns are performing. Adjust your goals accordingly to achieve your business objectives.
- Optimize your campaigns: Optimize your campaigns to achieve better results and reach your ROAS goals. Test different keywords, ads, and audiences to get the best possible performance.
Finding the perfect ROAS for your business goals requires patience, testing and optimization. However, by taking the right steps and regularly reviewing your goals, you can achieve better results and use your ad spend more effectively.