Return on Investment (ROI) measures the “return” (or profit) on a particular investment, relative to the amount invested. You can calculate ROI with the simple equation:
ROI = Net profit / Cost of Investment
ROI looks at the big picture. It shows you how profitable your investments are.
Return on Advertising Spend (ROAS) measures the efficiency of your online ad campaigns. It calculates the average revenue per purchase. It’s the ratio between your revenue and the amount of money you spend on advertising. Here’s the equation:
ROAS = Purchases from ads / Ad spend
ROAS helps you understand the effectiveness of your ads: how well they generate clicks, impressions, revenue, etc. ROAS is a good way to keep track of your ad campaign performance.
Comments
0 comments
Please sign in to leave a comment.