The single most important (measurable) metric for online advertisers is ROAS. There’s nothing more important than it, NOTHING!
ROAS hands you the answer to questions that digital entrepreneurs and marketers find themselves scratching their heads over:
“If I spend x amount on advertising, how much money will it return?”
“Is it worth me investing xx amount into this advertising channel?”
“How much of a gamble is advertising on this platform”
Of course, predicting your ROAS can’t tell you the future, but they can give you a estimation of success or failure and prevent mistakes that could cost you dearly.
Before We Go Any Further
Creating an ad is easy, crafting an offer isn’t rocket science and running ads (on most platforms) is pretty straightforward…
…but just because you’ve done all of these things, that doesn’t mean you’re good at them!
When it comes to digital advertising there are three crucial elements that you must strive to perfect. If you are able to optimise this trio, the accuracy and level of your ROAS will dramatically improve.
I want you to succeed. That’s why I’ve published this article (along with all the other strategies on Einstein’s blog). So please, before you invest your money in online advertising, make sure you can answer YES to these three questions. Don’t skip one, don’t reply with a MAYBE or an eye roll, get them down!
- Have you got the right offer?
- Are you targeting the correct (specific) audience?
- Have you got the right ad?
We won’t go into the ins and outs of these three crucial questions in this blog…
…because I’ve already written an entire post about it! If you’d like to check that out go to, The 3 Big Questions You Need to Answer.
But for now, before you get into the technicalities of digital advertising strategies, make sure you’re hitting these on the nose!
What are ROAS?
ROAS stands for Return On Advertising Spend. And whilst it’s pretty simple to explain…
The amount of money you make from an investment in advertising.
…it’s not nearly as easy to calculate.
In order to get an accurate read, you need to analyse your spend, against your anticipated CPC’s, CTR’s, conversion rates and offer price. In other words, you’ve got to guess at a few numbers and chuck them into a series of boring formulas.
It’s no fun. Trust me, I’ve done it a million times.
(Even when you know the formula like the back of your hand, you still have to punch those same sticky keys on the calculator!)
That’s why we’ve built something amazing for you.
I call it the Amazing-ROAS-Supertron-Calculator 3000 V.1. But, my name idea was overruled in favour of, The ROAS Calculator.
This awesome piece of kit basically does all the hard-work for you! And takes a lot of the guesswork out of the equation.
OK, I admit it, an online calculator isn’t a new thing, but…
…an ROAS calculator, that’s something to get excited about.
Alongside this tool, I’ve rounded up the average CPC per industry (from Facebook Ads), and the average conversion rate per industry (again from Facebook ads)…
…all you need to do is find your industry in the dropdown menu, enter your marketing budget and the selling price of your product/service and the calculator will do the rest for you.
…before you get over there to predict the return on your next advertising campaign, remember this, the average scores on those charts are exactly that, averages.
There are bad advertisers who’ve lowered your industry’s scores and amazing marketers who’ve raised them. Think about the strengths of your ad, offer and digital advertising skills, and consider where you lie on the chart. You don’t have to have run millions of online adverts to be onto a winner.
And don’t forget, you must test! Some of your campaigns will underperform, others will succeed beyond your wildest predictions. If you hit a failure first time out go back to the drawing board, make sure you can answer all three of those questions with a YES, and go again.
Keep on learning and working, learning and working, and soon enough everything will fall into place.
That’s enough talk, it’s time you got over there!
So what are you waiting for? Find out if your next advertising campaign is going to make you a fortune, or break the bank with our ROAS calculator.