ow do you How to Determine get good insight into the results of your campaign efforts? Set objectives, metrics and KPIs and use measurement tools to optimize effectiveness. In this article I will take you through a framework so that you can get start with ROAS, or Return on Ad Spend.
The emphasis on performance marketing is influencing the broader marketing domain, thanks to e-commerce, new technology and the rise of start-ups. This is also due to the visibility of short-term metrics such as cost per acquisition, which are fantastic compar to the relatively complex way of gaining insight into the return on brand building. As a result, more and more budget is being allocat to short-term impact, while various studies show that the right mix of branding and performance investments is the most effective.
Read about ROAS issues and a framework that offers concrete tools for, among other things, drawing up KPIs. It is bas on market standards and was develop by the IAB and BVA ROAS Taskforce in 2020 , but it is still useful and current.
What is ROAS or Return on Ad Spend?
ROAS is a marketing metric that measures the effectiveness of an advertising campaign. To calculate the ROAS of a campaign, you have to compare the campaign revenues with the campaign costs. A common mistake is that the campaign revenue can only be express in money. Often, only sales results are consider, i.e. the short-term effects.
But the return on campaign efforts can also be something else, such as brand awareness or brand appreciation. Ideally, this means that research has establish that, for example, top-of-mind awareness of the product or brand is an important step in the customer list of poland consumer email journey. And that higher top-of-mind awareness leads to more sales. In this example, top-of-mind awareness can be consider as ‘return’ and non-sales relat campaigns can also be evaluat bas on ROAS.
To calculate ROAS you ne to determine the campaign
costs in advance. Of course, there is some do i have your attention? this is how you influence customer behavior discussion about what these costs include. Are alb directory only advertising costs such as ‘Ad Spend’ includ in ROAS, or are creation, production and PR also includ?
The advice is: clearly determine the definitions in advance so that no discussion can arise about them afterwards.
Customer journey
The customer journey is the starting point, with the McKinsey model as a basis. This model includes 7 different phases of the customer journey. It is important to note that these phases are not consecutive and linear. Consumers can enter at any time (for example, with an impulse purchase.