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What it does
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Digital advertising is a fantastic way to boost your business, whether you're reaching out to new people or reconnecting with your current customers. A big part of making digital ads work is about experimenting to find those top-performing campaigns that we can grow. But at the end of the day, what we really want to know is if the money we're spending is actually making us money back.Above, you find a Return on Ad Spend (ROAS) Calculator. Just pop your figures in, and you'll quickly see how well your adverts are doing.
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How to calculate ROAS?
Figuring out your Return on Ad Spend (ROAS) is really important for knowing if your ads are making you money. To find it, you take the money you've made from the ads and divide it by how much you spent on those ads. If your ROAS is more than 1, that's great news! It means you're making more money than you're spending. This number helps you decide what to do with your ads in the future. Simply put, ROAS shows you how much money you're making for every pound you spend on advertising, helping you make smarter choices for your business.
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Why is it important to understand your ROAS
Knowing your Return on Ad Spend (ROAS) is really important because it tells you if your ads are making you money. If your ROAS is good, that means you're earning more than you're spending on ads. But if it's low or negative, you might need to change things up. Checking this number often helps you make smart choices about where to put your money in future ads. It also shows you which ads are working best, so you can put more money into those and think about changing the ones that aren't doing as well.
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What is considered a good ROAS in e-commerce?
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A good ROAS (Return on Ad Spend) in e-commerce is usually around 3.00 or higher. This means for every pound you spend on ads, you're getting back at least £4 in sales. But remember, what's 'good' can vary depending on your business and industry.
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What does the ROAS metric mean 2.00, 3.00, etc?
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When you see a ROAS of 2.00, it means you've earned £2 for every £1 you spent on advertising. A ROAS of 3.00 means you've made £3 for every £1 spent. The higher the number, the better your ads are doing.
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What does 'monthly spend' mean?
Monthly spend' is the total amount of money you've set aside to spend on advertising for a whole month. It's like your advertising budget for each month.
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How do I improve my ROAS?
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To make your ROAS better, you can do a few things. First, make sure your ads are reaching the right people. Second, keep an eye on which ads are doing well and put more money into them. Lastly, try to make your website as easy to use as possible so people are more likely to buy something.
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Dissatisfied with your current ROAS?
Are you a bit disappointed with your current ROAS? Don't worry, we've got your back! We offer a special service called a 'Paid Media Audit.' Think of it like a health check-up, but for your ads. We take a deep dive into everything you're doing with Google Ads, Facebook Ads, YouTube Ads, and more.We'll show you what you're getting right and what needs a bit of work. Plus, we'll give you a proven guide on how to make your ads even better. This way, you can reach more new customers and boost your sales. So why wait? Let's make your advertising as brilliant as it can be!
