You have not yet subscribed to our newsletter, sign up via this link to always receive and information! one or more KPIs that need to be managed. average value and turnover is a KPI, but a commonly used KPI (especially when turnover is actually realized via the site) is ROAS, I would like to dwell on the latter in this blog and I will tell you a little more about this popular KPI. Would you rather watch? At the bottom of this blog you can find a vlog from our YouTube channel. What is ROAS? It is only logical that every euro invested should also yield something, and that is exactly what this number indicates.
With online marketing and you use paid channels (for example Google Ads), return on your euro is important. I'll give you an example about the commonly used Google Ads. Last atmosphere in the phone number list same style month your Google Ads spend was € 1,750 and the revenue you realized with that is € 4,350. If you now want to know what you have earned per euro invested, the calculation is as follows: Revenue / Costs at € 4,350 / € 1,750 = € 2.48 In the example above, every euro invested yields € 2.48. You can also express the ROAS in a percentage. The formula you use is: Revenue / Costs * 100 at € 4,350 / € 1,750 * 100 = 248% How you want to express ROAS is entirely up to you.
The simplest answer that can be given to this is that it gives you insight into whether your online marketing efforts are profitable. If you know which ROAS you need to achieve, you will in principle no longer run into budget restrictions. Because you have determined a ROAS, you know what each invested euro yields, so that you can spend 'infinitely', as long as the ROAS remains at the desired level. The choice is often made to make a fixed budget available for Google Ads, for example. With that budget you try to achieve as much conversion and/or turnover as possible.