ROAS Optimisation

Return On Ad Spend is a digital advertising metric used to measure the effectiveness of a campaign by looking at how much customers spend.

Rather than only looking at how many conversions an advertising campaign has generated, ROAS also gives you information on how much revenue those customers have generated.

To calculate ROAS, divide advertising spend by the revenue generated by customers who came in from an ad or campaign.

For example, a company spends $2,000 on an advertising campaign in a month, and the campaign generates $10,000 in revenue. Therefore, the ROAS is 5 to 1 (500%), as $10,000 divided by $2,000 = $5.

Revenue: $10,000

___________________ ROAS = 500%

Cost: $2000

In other words, for every dollar spent on advertising, the campaign generates $5 worth of revenue.

In Match2One, the ROAS (Return On Ad Spend) optimised campaign will help you find the most valuable customers by optimising towards customers that give you the highest revenue.

While setting a ROAS goal for your campaign, you'll also need to provide an average order value for the products you're advertising. In the table below, we present our recommendations for the ROAS goal value based on the campaign model you plan to run.

Note: To run the ROAS campaign, you need to install a conversion pixel that tracks order value.