Getting a good Return On Ad Spend (ROAS) makes the difference between a thriving ecommerce brand and a dying one. It’s important to understand how to use ROAS as a metric to make marketing decisions about your paid advertising, and also when ROAS might not be that helpful.
ROAS is especially important for ecommerce businesses who are running multiple ads on different channels. It gives a metric that can be tracked at the channel, campaign, or ad level to determine what is working and what is not with regards to advertising performance.
Using ROAS, you can often tell at a glance whether an ad is a candidate for scaling or needs to be turned off. It’s very helpful for evaluating the effectiveness of specific advertising campaigns, rather than a 10,000 ft view of your marketing department.
