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Posted on May 15, 2008

ROAS or ROI?

chris
ROAS or ROI?
chris
Posted on May 15, 2008

Measuring PPC Returns – ROAS vs ROI

Return on Ad Spending (ROAS) and Return on Investment (ROI) are often interchanged as though they mean the same thing.  In this respect, Google is the biggest culprit.  While Yahoo characterizes Pay per Click (PPC) spending as “Spending!” Google glibly refers to it as an “Investment.”  Calling Pay per Click spending an investment is like calling a joy ride on a ferris wheel an investment.  The return lasts for one revolution of the wheel.  Enjoy it while it lasts, but don’t expect to derive a lasting benefit from the experience.

Water Under the Bridge

A squandered ad budget is lost forever, so it’s not a matter of quibbling over acronyms. It’s a matter of accountability.  Denver PPC evaluates Pay per Click (PPC) spending on the basis of ROAS. Our PPC customers retain us on a month to month basis. We spend every ad dollar with care.  We understand that every ad manager is only as good as his last ROAS rate.  We make a difference through better account structure, robust analysis, kaizen account maintenance, and custom reporting.  If your current PPC Ad Manager refers to ROI, then contact us.  Give us one business day, and we’ll review your account for free, give you some specific ideas about what can be done to improve your ROAS, and show you how you can also save some ad manager fees by choosing us to manage your Pay per Click (PPC) ad accounts.