Roas calculator | How to Maximize your Return on Ad Spend?

Return on advertising spend (ROAS) is a marketing metric that measures how much revenue you will get for every dollar invested in marketing advertising. The core of ROAS is to measure the efficiency of your marketing efforts. Therefore, if your return on ad spend is 3:1, this means you can earn $3 for every dollar you spend on advertising revenue.

In the process of calculating Roas, you often need some necessary calculators to help you quickly calculate the revenue of advertising. Roas calculator is a very important tool.So, how to use Roas calculator to calculate ROAS? Most importantly, how to maximize your Return on Ad Spend?

This is what we are going to discuss today.

How to use Roas calculator to calculate ROAS?

Roas Calculator is a Google extension tool for Return on Ad Spend that can automatically calculate your ads by entering specific values. You can search for ROI & ROAS Calculator in the Google App Store, and you can quickly install the Google Expansion Calculator.

The formula for Return on Ad Spend is:

This equation provides you with a ratio that can be used to determine whether a marketing campaign is effective. For example, if an ad campaign generates $10,000 in revenue and spends $200, then your return on ad spend is 5:1. But in fact, the actual advertising campaign costs are not so regular, and it is not so easy to calculate. At this time, you can use the Roas calculator to get answers quickly.

How to Maximize your Return on Ad Spend?

Next, let’s talk about how to maximize your advertising Roas. What should I do when the advertising return on investment of advertising is low? You need to further analyze your ad. If the advertising return on investment of the campaign is higher than 3:1, then you don’t need to worry about it, your advertising is still healthy. If the advertising return on investment of the campaign is less than 3:1, then it’s time for you to learn more about positioning, advertising return on investment accuracy and advertising costs.

Find the budget boundary

If your advertising Roas is too low, perhaps you need to consider whether there is a problem with your budget bid, or your budget is generally higher than the market average price. Maybe you need to know more about the average market bid. For example, average CPC, CPM, CPA, CTR. With the average price as the budget boundary, you can adjust the advertising content at will without losing money. ADCostly can provide these data accurately, and you can choose what you need through filters.

Reduce unnecessary advertising expenditure

If your Roas is low, then you need to consider whether your advertising spends a lot on other costs. These costs lower your Roas. Perhaps you can optimize from the following three aspects.

  • Reduce the time to manage advertising: If your own company advertises and employees spend too much time and money, you should consider outsourcing a marketing company.
  • Check negative keywords: Check if you’re wasting your ad spend on words that you don’t want to target. These invalid words will take up half of your expenses.
  • Change delivery country: If your ads have been placed in developed countries such as the United States and the United Kingdom, you might as well try some developing countries, such as India and Egypt. Your advertising costs will be reduced, and Roas will also increase.

Refined audience market

How do you choose your audience when advertising? Have you chosen the most suitable interest? Have you chosen the age range of your audience? If not, then you need to refine your audience market, because your ads are ineffective many times.

So you need to determine the number of audiences for each interest based on your interest, and get the degree of the interest in different countries. ADCostly can obtain these data through search.

In addition, you need to think more about age and gender. ADCostly also has certain data to support age and gender, you can refer to it.

Final Thoughts

Return on advertising spend (ROAS) is a powerful advertising indicator, but it does not exist in a vacuum. The true value of advertising return on investment is that it can provide more detailed insights when considered with other metrics you may already be tracking. We look forward to you gaining a better Roas.