Calculate RoAS – Return on Ad Spend

return on ad spend ROAS

To Calculate ROAS which is Return on Ad Spend, is very simple.

The formula to calculate ROAS is Sales Revenue divided by Ad Spend

For example if Sales Revenue is $20,000, and your Ad Spend is $5,000

It would be $20,000 / Divided by / $5,000 = Equals $4 or 400% Percent Return!

There are many advertising portals such as Amazon Advertising, Google Adwords, Bing Ads and Facebook Ads along with Kenshoo who will use this terminology, but will rarely calculate it for you.. At the end of the day the more you lower ACoS (advertised cost of sale), the higher the Return on Ad Spend will be.

It starts with effective Amazon Campaign Management and showcasing the most efficient products and ASINS with optimal budgets to see the profits. Next step is to manage your keyword analysis with Broad, Phrase, Exact and Negative matching to ensure that you are targeting your audience efficiently.  How do you do that?  

Let the Amazon Certified Experts handle marketing keywords and campaigns so you can look avoid wasted ad spend and focus on increasing sales. Search Engine Markets will provide daily, weekly and even amazon monthly analysis and reports to show you the most efficient and least effective campaigns so that you can collaborate and make decisions with your team.