ROAS | Return On Advertising Spend

Like ROI, there is ROAS (Return on Advertising Spend) as an index to measure the performance of advertising operations. ROI is an indicator based on profit, whereas ROAS is an index showing the collection rate of advertising expenditure based on sales. That is, ROAS clarifies how much sales were raised against advertising costs. In addition, ROI judges the effect based on 0%, that is, based on whether or not profits are generated, whereas ROAS judges the effect on the basis of 100%, that is, whether sales exceeding the advertisement expenses are up As a reference. (Both are often misunderstood because they are similar indicators.) ROAS is calculated by the following formula. ROAS = sales ÷ advertisement cost × 100 (%)

Video What is ROAS?

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