If you’re a marketer setting up an online ad campaign, then you need to be aware of the return on ad spend (ROAS) metric.
Of course, it’s not the only metric you need to be aware of: conversions, conversion rate, cost per conversion, and click-through rates are also incredibly important.
But if you’re looking for a metric that can help you trim off the fat from your existing budget, identify scaling opportunities, and refine your marketing strategy, all without increasing the budget, then you need to be aware of your ROAS.
ROAS Calculator (Return on Ad Spend)
What is ROAS and Why is this Metric Important?
ROAS is a useful metric for helping marketers understand the amount of revenue they make based on every dollar they spend in advertising.
It’s used to help marketers understand which ad groups are performing best, and is also used to measure the effectiveness of changes made to the campaign.
ROAS is similar to return on investment (ROI), however, ROAS doesn’t account for expenses the way ROI does. An ROAS calculation is used solely for measuring the effectiveness of specific campaigns, ad groups, and keywords to help marketers evaluate their effectiveness.
While advertising budgets can be fluid, depending on the client, ROAS helps marketers maximize their fixed budget by looking at which campaign and ad group’s ROAS is highest.
By looking at each ad group’s ROAS, marketers can then incrementally scale up the budget for these better-performing ad groups in a more cautious and efficient way.
Knowing your ROAS can answer questions like, “If we spend one more dollar in ad spend, how much extra revenue will that generate?”
To calculate the ROAS, take your ad revenue and divide it by the total ad spend, then multiply X 100%. Or you can use our helpful ROAS calculator to make this calculation simple.
How Can an Organization or Agency Grow their ROAS?
When your revenue increases, but your ad spend remains the same, your ROAS will grow.
This means improving your ROAS can help you get more sales and conversions without increasing your marketing budget, which is ideal.
So how does an organization or agency grow its ROAS? There are many ways, but the primary way it’s achieved is through conversion rate optimization (CRO).
Let’s look at the following ways marketers can improve their CRO:
- Optimize landing pages for a better user experience
- A/B test landing pages to see which page gets more clicks and conversions
- Consider using geo-targeting to hone in on specific target audiences
- Refine keyword targeting, including using negative keywords
- Improve the mobile experience on your website
- Improve the quality score of your ads
- Research your competitors’ keywords and differentiate yourself from the competition
How Can White Labeling PPC Services Help My Agency?
Setting up and managing an online advertising campaign is often too complex for inexperienced marketers to handle on their own. When set up incorrectly, campaigns can quickly spiral into a chaotic mess that wastes money, resulting in a poor ROAS rating.
To manage a successful online advertising campaign, you’re going to need an expert who’s experienced in the online marketing sphere.
Not only will this person need to be an expert in Google Ads and its platform, but also combine intuition and writing skills to craft compelling ads that convert into paying customers.
Too often companies decide to start online advertising campaigns, only to assign the task to a new employee, or an existing employee who already has too much on their plate.
Instead of spending time hiring a new employee or training an existing employee, companies can outsource this PPC to an outside agency.
When you outsource your PPC work to a white labeling PPC agency, you gain immediate access to experts with a proven track record of managing successful campaigns.
The benefits are hiring a white label PPC agency are numerous, including:
- Cost-savings — Hiring an outside agency is less expensive than hiring a new employee.
- Time-savings — Outside agencies can begin their work immediately, whereas a new employee has a steep learning curve.
- Better strategy — PPC account managers are skilled in various industries and understand the online marketing space. They can work with you to set up a winning strategy that takes into account your competitors and the industry you’re working in.
If you work for a marketing agency that’s looking to expand its PPC services to your existing clients, then white label PPC is for you.
White label agencies will do the PPC work on your behalf, while your company gets all the credit for the work done. It’s an easy way for companies to offer more services while staying lean.
Improve Your ROAS: Outsource Your PPC Work to Denver PPC
Our company is a Google Premier Partner. This prestigious certification is only given to the top 3% of participating companies that have proven their ability to maximize campaign success for their clients, driving client growth by maintaining their campaigns and demonstrating Google Ad skills and expertise.
At Denver PPC, all of our account managers are Google Certified and based in the United States.
We don’t require long-term contracts and our pricing allows for a high profit margin.
We combine data and marketing expertise in various industries and online spaces to deliver guaranteed PPC results.
Denver PPC has the experience, certifications, proven process, and professional discipline to constantly move the needle on your PPC marketing campaigns. We are skilled at handling Google Ads, Facebook Ads, and Bing Ads.
Do you have an existing Google Ads account that you need help with? Text or call us at 877-584-3772 today to receive your free 10 point analysis, and we’ll give you feedback on how to improve your current campaign.