The main difference between ROAS and ROI is that ROI takes into account general aspects of the business, such as investments relat to employees, water, electricity, internet, tools, among others.
ROAS, on the other hand, speaks exclusively about advertising campaigns, those in which you can segment your audience by age group, location, Face ADS Pixels, among several other criteria.
In a very simple way, we can say that ROAS only takes into account the amount invest in the ads of the campaign in question.
If you were to calculate the campaign’s ROI, for example, in addition to the amount invest in advertising, you would ne to include the other aspects mention above, such as labor and electricity.
How to calculate ROAS?
And how do you calculate ROAS? It’s a simple buy phone number list calculation. Basically, you should follow this formula:
ROAS = (revenue earn through ads / cost of ads) x 100
With this formula, you will have the result as a percentage of your ROAS.
And
If your result is 100%
It means that you are earning 1 real for every 1 real spent. In other words, you are bob bibou exec/management (other) neither making money nor making a loss: you are having a neutral ROAS.
Now, if your result is less than 100%, it means that you are spending more than you are earning with your campaign. In this case, your ROAS is negative.
For ROAS to be consider positive, it must be european union phone number above 100% and, in this sense, the higher the better!
Studying the ROAS result is essential, because How do you know if if it is below 100% or even equal, it means that all data must be analyz, so that campaigns can be optimiz, generating increasingly better results.