Return on ad spend (ROAS) is a measure of the profitability of a Google Ads campaign. It is calculated by dividing the revenue generated by the campaign by the total cost of the campaign. ROAS is expressed as a percentage, and a higher percentage indicates a more successful campaign.
To calculate ROAS for a Google Ads campaign, follow these steps:
- Determine the total cost of the campaign. This includes all expenses associated with the campaign.
- Determine the total revenue generated by the campaign. This includes all income directly generated by the campaign, such as sales of products or services, as well as any other revenue that can be attributed to the campaign.
- Divide the total revenue by the total cost of the campaign. This will give you the ROAS as a decimal.
- Multiply the decimal by 100 to convert it to a percentage. This is the ROAS for the campaign.
It’s important to keep in mind that ROAS is just one measure of the success of a Google Ads campaign. Other factors, such as the number of clicks and impressions generated by the campaign, as well as the quality of the leads generated, can also be important indicators of success.
Overall, calculating ROAS for a Google Ads campaign can help you to understand the profitability of the campaign and make informed decisions about your ad spend. By tracking ROAS over time, you can also identify trends and optimize your campaigns for maximum efficiency and effectiveness.