A common metric used to determine the success of a PPC campaign

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CPA, or cost per conversion. While this is a very useful metric for measuring the cost of conversions, it only measures the average cost associated with a single action. Imagine you have two ad groups. Each spent $100 and got one conversion, meaning they both have the same cost per conversion of $100. However, when we examine the value of each conversion, we see a completely different picture. We find that the first ad group generated a conversion worth $50, while the second generated a conversion worth $30, giving us an ROAS of 3, while the first had only 0.5. This significant difference in return for the same amount spent can be the difference between a profitable campaign and a losing one .

ROAS less than one equals a loss
Achieving a ROAS of less than one is a waste of nepal phone number data time and money because you will earn less than one crown for every crown you spend, while an ROAS of 3 shows that for every crown spent on advertising in this ad group, you will earn three crowns. Calculating both return on ad spend and return on ad spend is quite simple.

You calculate ROAS using the formula Revenue/Cost. If you invest 100 CZK in advertising and earn 500 CZK, your ROAS is 5 or 500% in percentage. If you are running a profit-oriented campaign, your goal should be to achieve the highest possible ROAS. While it is easy to find out the cost of advertising, to find out the revenue you need to have active conversion tracking in your campaign.
Using ROAS

In practice, you will use ROAS mainly when evaluating the success of a specific advertising campaign and when deciding how to divide the budget between multiple advertising campaigns. By comparing the ROAS of individual campaigns, you can easily identify which campaigns deserve a higher budget and which ones should be weakened or stopped due to loss-making (low ROAS).