Are Your Campaigns Actually Making Money for Your Business?

Influential marketing ideas are now determined by analytics and big data.
min read

In today’s digital marketing landscape, decisions are no longer guided just by hypothesis and past experience. Influential marketing ideas are now determined by analytics and big data.

Digital marketing metrics are measures we use to determine the success of various marketing efforts as they relate to their overall campaign goals and industry standards.

You’ve heard of vanity metrics, right? The surface level numbers that often tease you into thinking your efforts are working? Unfortunately, to get a clear picture of your campaign’s impact, you need to look at actionable metrics.

Luckily, there are important metrics that keep things in focus, so you can see the direct impact of your digital marketing efforts. One metric that I would like to single out has the ability to pull every one of your marketing efforts into focus: return on advertising spend (ROAS).

What Exactly Is ROAS?

Return on ad spend is the amount of revenue a specific marketing effort generates compared to the amount invested in that effort.

For example, if you spent $100 on a campaign and it generates $200 in revenue, your ROAS is $2 for every $1 spent (or 200%).

Want to know if a particular campaign is worth your time and money? Check your ROAS. Want to know if those targeting changes you made are working? Check your ROAS.

“This year, our ROAS was around 1200%, and that equated to about $375,000 in revenue for us. So the system has definitely worked for us tremendously. We value that service and will continue to use that in the future.”   – Mike McDonell, President of Kidventure, Inc.

If your online advertising isn’t producing revenue, you need to change something. But, if you aren’t tracking ROAS, you won’t know where you need to make changes. Our ACTIVE Digital Marketing Services team has experts in producing and managing campaigns, and our live dashboard will allow you to continuously track campaign ROAS.

Are Your Campaigns Making Money?
Live dashboard for tracking campaign performance.

Incidentally, if you’d like help calculating ROAS or using it to make marketing decisions, let us know. We’d love to help!

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Cristi Chentnik
Senior Product Manager, Consumer Engagement
February 17, 2020
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