What does Return On Ad Spend mean?
Measuring campaigns by Return On Ad Spend (ROAS) is growing in popularity due to its ability to provide the most important information for campaign success - its revenue.
ROAS is a programmatic reporting metric that showcases the amount of revenue a company receives for every dollar spent on an online advertising campaign. The higher the return, the more effective the ad campaign is.
This is calculated by dividing the total revenue by the total spend for a campaign. The total revenue is the sum of the order values that your campaign has generated and the total spend is the total amount of money invested in impressions of your ads.
Simply put, a positive ROAS (higher than 1.0x) means that your campaign is generating higher revenue than its spending.
ROAS in Match2One's Platform
In Match2One's platform, you can optimise towards ROAS and find more information on ROAS results per specific campaign or a group of campaigns filtered in the Dashboard.
In a day-by-day performance report, you can find out how the ROAS has changed over time. Other ROAS related metrics are available on a campaign level and per creative, so you can easily compare the revenue generated by different creatives or banner sizes.
You will also find a padlock icon next to a specific date representing an open or closed attribution window for a specific day. Once the attribution window is closed for both post-click and post-view conversions, the padlock icon will turn grey, and the metrics related to attribution (Conversions, CPA, Revenue, and ROAS) will not change.
To track ROAS or use it as an optimisation method, you'll need to have installed an Advanced Conversion Pixel (with order value) with a reference to order value and your currency code. To find out more about the installation, take a look at the manual installation instructions or installation using Google Tag Manager.