The acronym ROAS (Return on Advertising Spend) is used to define the return on advertising investment spent.
Thus, this metric indicates the economic results obtained with respect to an investment in advertising, especially on ADS platforms such as Facebook and Google.
ROAS is calculated as (Advertising Campaign Revenue) / (Advertising Spend) *100.
As can be easily guessed, ROAS is a particularly interesting KPI to consider when evaluating the performance of one’s ADS campaigns.
Very often, however, it is confused with ROI: while ROAS means the return on the advertising investment made, ROI measures, more generally, the return on the overall investment incurred on a marketing campaign as a whole.
It is also important to remember, how to have a better evaluation of one’s ADS campaign, it is necessary to combine and evaluate as a whole several indicators such as: CPC, CPA, visits, conversions, frequency and number of views; in fact, only in this way will it be possible to have a complete picture, while keeping fixed the goal of obviously generating more revenue.
