ROAS (return on advertising spend) is the return on advertising investment, or the rate of return you get for every zloty spent on an advertising campaign. Unlike ROI, it may not take into account the cost of doing business.
At the end of this post I'll give you where to use the ROAS calculator. Read to the end.
The calculator calculates ROI and the percentage return on investment.
It can be used to calculate whether an advertising campaign will make a profit.
You can also calculate by how much you need to increase your advertising budget to achieve the result you want.
Example ROAS calculation: $1,000 was spent to launch an advertising campaign on Facebook, which brought 400 registrations at $10 each. Revenue from the campaign: 400 x 10 = 4,000. Let's now calculate the ROAS: PLN 4,000 / 1,000 = 4(400%). This means that for every PLN spent on advertising, you earned 4 PLN. A good ROAS is greater than 1.
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