In the vast world of online advertising, where every click and impression counts, it is essential to understand and monitor Return on Advertising Spend (ROAS). This indicator is a key metric that measures the effectiveness of online advertising investments and helps companies evaluate how much they are getting in terms of financial return on their advertising spend. In this article, we will explore the concept of ROAS, how it is calculated, and why it is so vital to the success of online advertising campaigns.
What is ROAS?
ROAS, or Return on Advertising Spend, is a metric that indicates how much profit is generated for each euro spent on advertising. In other words, it measures the relationship between the value of conversions (sales in euros) generated by an advertising campaign and the cost of the advertising itself. For example, if you spend 100 euros on advertising and get 1000 euros in sales, your ROAS would be 1000%.
How is ROAS calculated?
Calculating ROAS is pretty simple. Simply divide the value of conversions obtained from the advertising campaign by the cost of advertising and multiply the result by 100 to obtain the percentage.
ROAS = (Value of Conversions / Cost of Advertising) 100
Practical Example of ROAS Calculation:
Let's imagine we have an e-commerce company that has spent 500 euros on online advertising via Google Ads. During the monitoring period, it achieved a conversion value of 6,000 euros.
ROAS = (€6,000 / €500) 100 = 1200%
This means that for every euro spent on advertising, e-commerce obtained 12 euros in sales.
ROAS in Action on Cosito.it
Recently, two e-commerce sites created on the Cosito.it platform have recorded impressive ROAS through their advertising campaigns on Google Ads.
The first E-Commerce has reported a ROAS of 1255% in the last 30 days. This means that for every euro invested in advertising, the company obtained an incredible return of 12.55 euros in terms of sales. An extraordinary result that reflects the effectiveness of the advertising strategies implemented.
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The second E-Commerce achieved a ROAS of 1078%. Although slightly lower than the previous one, this result still indicates a significant return on advertising investment, with 10.78 euros of sales generated for every euro spent on online ads.
Invest safely on Cosito.it
These two success cases demonstrate how essential it is to have a solid advertising strategy and a reliable platform like Cosito.it to maximize ROAS and obtain tangible results. If you want to achieve similar results for your business, do not hesitate to contact us to find out how we can help you create your E-Commerce on Cosito.it and maximize your ROI through targeted advertising campaigns and winning strategies.
Start investing with confidence and achieving extraordinary results today with Cosito.it!
Contact us now to find out how we can help you create your E-Commerce on Cosito.it and maximize your ROI through targeted advertising campaigns and winning strategies.
