What is ROAS and can you track it in real-time?
26 Sep 2023
ROAS, or Return on Ad Spend, is a metric that measures how much revenue your advertising campaigns are generating for every pound you spend on them. It is calculated by dividing your total conversion value by your total ad spend.
ROAS = Conversion Value / Ad Spend
For example, if you spend £100 on advertising and generate £500 in revenue, your ROAS would be 5. This means that you are earning £5 for every pound you spend on advertising.
Why is ROAS important?
ROAS is an important metric because it helps you to measure the effectiveness of your advertising campaigns. By tracking ROAS, you can see which campaigns are generating the most revenue and which ones are not performing as well. This information can then be used to optimize your campaigns and improve your overall ROAS.
Can you track ROAS in real-time?
Yes, it is possible to track ROAS in real-time. Most advertising platforms offer tools and reports that allow you to see how your campaigns are performing at any given moment. For example, in Google Ads, you can use the Real-time report to see your ROAS by campaign, ad group, and keyword. You can also use the Custom columns feature to create a custom column that shows your ROAS in real-time.
Benefits of tracking ROAS in real-time
There are several benefits to tracking ROAS in real-time, including:
- Identify high-performing campaigns and keywords. By tracking ROAS in real-time, you can quickly identify which campaigns and keywords are generating the most revenue. This allows you to focus your budget on the most profitable areas of your account.
- Make timely optimizations. If you see that a particular campaign or keyword is not performing well, you can make adjustments to your bids or targeting settings immediately. This can help you avoid wasting money on unprofitable campaigns and keywords.
- Improve your overall ROAS. By tracking ROAS in real-time and making timely optimizations, you can improve your overall ROAS and get more out of your advertising budget.
How to track ROAS in real-time
The specific steps for tracking ROAS in real-time will vary depending on the advertising platform you are using. However, most platforms offer similar tools and reports.
Here are some general instructions on how to track ROAS in real-time
- Go to your advertising account and navigate to the reports section.
- Find the report that shows your campaign performance in real-time.
- Add a column to the report that shows your ROAS.
- Monitor your ROAS on a regular basis to identify any areas where you can improve.
Tips for improving your ROAS
Here are a few tips for improving your ROAS:
- Target the right audience. Make sure that you are targeting your ads to people who are likely to be interested in what you have to offer. You can use demographic targeting, interest targeting, and keyword targeting to narrow down your audience.
- Use relevant keywords. When you are creating your ad campaigns, make sure to use relevant keywords that your target audience is likely to search for. You can use keyword research tools to find the right keywords for your campaigns.
- Write compelling ad copy. Your ad copy should be clear, concise, and persuasive. It should also be relevant to the keywords you are targeting.
- Set competitive bids. You need to set bids that are high enough to get your ads seen by your target audience, but not so high that you are losing money on your campaigns. You can use bidding tools to help you set competitive bids.
- Test and optimize your campaigns. Once you have launched your campaigns, it is important to test and optimize them regularly to improve your ROAS. You can test different ad copy, keywords, and targeting settings to see what works best for your business.
ROAS is an important metric for any business that is using advertising to generate leads or sales. By tracking ROAS in real-time, you can identify high-performing campaigns and keywords, make timely optimizations, and improve your overall ROAS.
Webolytics is a good choice of martech platform for ROAS because it offers a number of features that are specifically designed to help businesses track and improve their ROAS.
Some of the key features of Webolytics that make it a good choice for ROAS tracking include:
- Real-time reporting: Webolytics offers real-time reporting on ROAS, so you can see how your campaigns are performing at any given moment. This allows you to make timely optimizations and identify any areas where you can improve.
- Attribution modeling: Webolytics offers a variety of attribution modeling options, so you can choose the model that best reflects the customer journey for your business. This allows you to accurately track the impact of your marketing campaigns on ROAS.
- Cohort analysis: Webolytics offers cohort analysis, which allows you to track the performance of different groups of customers over time. This can be helpful for identifying trends and patterns in ROAS.
- Intuitive dashboards: Webolytics’ dashboards can track the metrics that are most important to your business. This can help you to quickly and easily see how your ROAS is performing.
In addition to these features, Webolytics also offers a number of other features that can be helpful for improving ROAS, such as:
- A/B testing: Webolytics allows you to A/B test different marketing campaigns and landing pages to see which ones perform best. This can help you to improve the conversion rates of your campaigns and boost your ROAS.
- Funnel analysis: Webolytics offers funnel analysis, which allows you to track the progress of customers through your marketing funnel. This can help you to identify areas where customers are dropping out of the funnel and make changes to improve your conversion rates
- Segmentation: Webolytics allows you to segment your audience based on a variety of factors, such as demographics, interests, and purchase behavior. This allows you to target your marketing campaigns more effectively and improve your ROAS.
Overall, Webolytics is a good choice of martech platform for ROAS because it offers a comprehensive set of features that can help businesses to track and improve their ROAS.