{"id":179143,"date":"2024-04-25T21:22:50","date_gmt":"2024-04-25T20:22:50","guid":{"rendered":"https:\/\/datascientest.com\/en\/?p=179143"},"modified":"2024-02-17T22:16:18","modified_gmt":"2024-02-17T21:16:18","slug":"roas-return-on-ad-spend-what-is-roas-what-is-it-used-for","status":"publish","type":"post","link":"https:\/\/datascientest.com\/en\/roas-return-on-ad-spend-what-is-roas-what-is-it-used-for","title":{"rendered":"ROAS (return on ad spend): What is ROAS? What is it used for?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"179143\" class=\"elementor elementor-179143\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2637e06 e-flex e-con-boxed e-con\" data-id=\"2637e06\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-14bdbc5 elementor-widget elementor-widget-heading\" data-id=\"14bdbc5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 02-08-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">To maximise their visibility and sales, many companies invest in advertising. But the cost of advertising is often considerable. And the return on investment isn't always there. That's precisely why it's so important to measure ROAS.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0094652 elementor-widget elementor-widget-text-editor\" data-id=\"0094652\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 02-08-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>So what is it? How is it calculated? What&#8217;s the point of this method? Find out the answers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-a7cb7b5 e-flex e-con-boxed e-con\" data-id=\"a7cb7b5\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-15ec147 elementor-widget elementor-widget-heading\" data-id=\"15ec147\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What is ROAS?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2f34a06 elementor-widget elementor-widget-heading\" data-id=\"2f34a06\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Definition of ROAS<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-483420e elementor-widget elementor-widget-text-editor\" data-id=\"483420e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>ROAS stands for Return On Ad Spend<\/strong>. In other words, return on advertising investment. This is a way of measuring the sales generated by each expenditure on advertising.<\/p><p>This is one of the <a href=\"https:\/\/datascientest.com\/en\/growth-marketing-definition-and-differences-from-growth-hacking\">most relevant indicators for marketing professionals<\/a>. And with good reason: while advertising remains one of the best levers of visibility, companies are also paying increasing attention to their spending. In fact, in the United States, 49% of companies are halting or suspending their advertising budgets.<\/p><p>Why such a decision? The economic context is undoubtedly partly responsible for this choice. But it is not the only reason. Performance concerns are driving companies to review their strategy. Particularly when it comes to advertising, since the benefits of advertising are extremely variable.<\/p><p><a href=\"https:\/\/datascientest.com\/en\/ai-tools-for-marketing-how-can-you-improve-your-strategy\">So how do you make sure you get the maximum return?<\/a> All you have to do is monitor your <strong>ROAS.<\/strong> The idea is to identify the most profitable marketing channels and strategies, and thus avoid &#8220;useless&#8221; expenditure.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-34b1d2a elementor-widget elementor-widget-text-editor\" data-id=\"34b1d2a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Good to know:<\/strong> ROAS measures the effectiveness of ALL advertising activities. This includes the cost of traditional advertising (cinema, television, radio, etc.), advertising on search engines and social networks, as well as content marketing.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ed2e9d2 elementor-widget elementor-widget-heading\" data-id=\"ed2e9d2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">ROAS et ROI<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e2771c7 elementor-widget elementor-widget-text-editor\" data-id=\"e2771c7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>ROAS is very similar to ROI, but the two concepts should not be confused. ROI (Return On Investment) measures the effectiveness of all the company&#8217;s activities <a href=\"https:\/\/datascientest.com\/en\/digital-marketing-definition-professions-training\">(marketing<\/a>, sales, logistics, organisation, etc.).<\/p><p><strong>ROAS,<\/strong> on the other hand, is limited to calculating the euros generated exclusively by advertising activities. It is therefore only a small part of the ROI. In this respect, return on advertising investment is mainly of concern to marketing experts, whereas ROI is mainly studied by decision-making bodies and the finance department.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4c956c8 e-flex e-con-boxed e-con\" data-id=\"4c956c8\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5b86f7a elementor-widget elementor-widget-heading\" data-id=\"5b86f7a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">How do you calculate ROAS?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-61d4487 elementor-widget elementor-widget-heading\" data-id=\"61d4487\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Calculation method<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2fc8ca2 elementor-widget elementor-widget-text-editor\" data-id=\"2fc8ca2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>To calculate the return on advertising investment, simply follow the formula below:<\/p><p>ROAS = sales generated through advertising \/ total advertising costs<\/p><p>To help you understand, here&#8217;s an example:<\/p><p>Expenditure on advertising campaigns: \u20ac5,000<br \/>Sales generated by advertising: \u20ac15,000<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-815a599 elementor-widget elementor-widget-text-editor\" data-id=\"815a599\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In this case, the ROAS is 15,000 \/ 5,000 = 3<\/p><p>For every \u20ac1 invested, the company generates \u20ac3.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c8f3acc elementor-widget elementor-widget-image\" data-id=\"c8f3acc\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 02-08-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/datascientest.com\/wp-content\/uploads\/2023\/05\/calcul-roas.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\"><\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a7185dd elementor-align-center button-principale elementor-widget elementor-widget-button\" data-id=\"a7185dd\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm elementor-animation-grow\" href=\"https:\/\/datascientest.com\/en\/data-courses\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Learn how to improve a ROAS<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-45e3e8c elementor-widget elementor-widget-text-editor\" data-id=\"45e3e8c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Good to know:<\/strong> don&#8217;t forget to define a precise period for calculating the<strong> ROAS.<\/strong> This could be a month, a quarter, 6 months or a year. We advise you to select several months, as advertising campaigns generally take a long time to produce results. Between lead generation and the sales cycle, which can take a long time, you need to allow at least 3 to 6 months. If you choose too short a calculation period, you won&#8217;t necessarily see the correlation between the expenditure incurred and the revenue generated.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-990fcba elementor-widget elementor-widget-heading\" data-id=\"990fcba\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Factors to be taken into account<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8811eea elementor-widget elementor-widget-text-editor\" data-id=\"8811eea\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>While the <strong>ROAS formula is relatively simple,<\/strong> it is important to specify the elements to be included in these two variables:<\/p><ol><li><strong>Sales generated through advertising:<\/strong> you should only select sales generated through advertising activities, such as a lead buying via your website. On the other hand, the sale to a prospect by the sales rep (only) should not be included in the calculation.<\/li><li><strong>Total advertising costs:<\/strong> these are direct and indirect expenses. For example, expenditure on Google Ads, Facebook Ads, fees for subcontractors involved in the project, employee salaries in relation to time spent on campaigns, etc.<\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-82d7d12 elementor-widget elementor-widget-text-editor\" data-id=\"82d7d12\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Good to know:<\/strong> there is no right or wrong ROAS. It depends on a multitude of factors, such as the sector of activity, the type of content, the communication channel, etc.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-c2a0382 e-flex e-con-boxed e-con\" data-id=\"c2a0382\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c6dd522 elementor-widget elementor-widget-heading\" data-id=\"c6dd522\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Things to remember<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-14f89e8 elementor-widget elementor-widget-text-editor\" data-id=\"14f89e8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li style=\"font-weight: 400;\" aria-level=\"1\">ROAS refers to return on advertising investment. In other words, the gains obtained for each euro spent on a paid advertisement.<\/li><li style=\"font-weight: 400;\" aria-level=\"1\">Not to be confused with ROI, which is the return on investment for all the organisation&#8217;s activities.<\/li><li style=\"font-weight: 400;\" aria-level=\"1\">When launching an advertising campaign, every company&#8217;s objective is to obtain the highest possible ROAS.<\/li><li style=\"font-weight: 400;\" aria-level=\"1\">To achieve this, they need to improve their customer knowledge.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-9c2a704 e-flex e-con-boxed e-con\" data-id=\"9c2a704\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d6baea3 elementor-widget elementor-widget-html\" data-id=\"d6baea3\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What is ROAS?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"ROAS stands for Return On Ad Spent. 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For example, the right communication channels, content that works, etc. Gradually, this indicator helps you to refine your advertising strategy and optimise your results.\"\n    }\n  }]\n}\n<\/script>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>To maximise their visibility and sales, many companies invest in advertising. But the cost of advertising is often considerable. And the return on investment isn&#8217;t always there. That&#8217;s precisely why it&#8217;s so important to measure ROAS. So what is it? How is it calculated? What&#8217;s the point of this method? Find out the answers. What [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":179155,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"content-type":"","inline_featured_image":false},"categories":[2423],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.7 (Yoast SEO v21.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ROAS (return on ad spend): What is ROAS? What is it used for?<\/title>\n<meta name=\"description\" content=\"ROAS, or Return on Ad Spend, is a marketing metric used to measure the effectiveness of advertising campaigns by calculating the revenue generated for every dollar spent on advertising. 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