ROI is the return on investment in advertising. It is Metrica is presented determined by a simple formula:
ROI = (profit – advertising investment) * 100% / advertising investment.
The value shows whether the advertising costs were recouped, no matter what kind.
Here are the possible ROI options:
> 0 – this means that the investment in advertising has paid off;
< 0 – shows that the advertising campaign is unprofitable;
= 0 — the investment paid for itself, although it did not generate income.
How to find out ROI? Metrica is presented
Google Ads and Google Analytics cannot calculate gambling database the ROI. To find out the value of the indicator, you can do the following.
In Google Ads:
- connect e-commerce tracking (relevant for online stores) and set the necessary settings;
- view income information in Google Analytics, namely: by following the path: “Traffic sources” — “Google Advertising” — “Campaigns”.
If, when setting up goals that are not related to the sale of goods, a conversion value was specified, then the profit in the Google Analytics report will be presented in the “Goal Value N” column.
To find out the return on investment for advertising campaigns in Yandex Direct, you need to set the optimal return on investment in advertising when setting up campaigns. To do this, select the “Profitability Optimization” auto identify qualified leads strategy. Then the tool will try to come to the necessary POI for the set goal.
Information on profit for online stores in Y “E-Commerce” — “Orders”.
Return on Advertising Spend (ROAS)
This is the cost-benefit ratio for contextual advertising. It shows how much income each ruble spent on the campaign brings to the business.
Formula for calculating ROAS:
ROAS = (advertising revenue / advertising costs) * 100%.
The costs include money spent on the implementation and support of the advertising campaign. The cost price of the product, the costs of its transportation, and the earnings of specialists are not taken into account when calculating the indicator.
ROAS helps to evaluate the results of launching an advertisement, several interrelated advertisements, a keyword, i.e. it works it email list comprehensively. The value of this indicator is compared with 100%. If:
- ROAS > 100%, then the advertising is profitable, while when the indicator is 200%, then the business earns 2 rubles of income from 1 ruble spent;
- ROAS = 100%, then the profit from the campaign and the investment in it are equal, that is, the payback is 100%, but the investment does not bring in income;
- ROAS < 100%, then advertising is operating at a loss, for example, when the indicator is 30%, this means that the company invested 1 ruble in the campaign and received 30 kopecks in income.
How to find out ROAS?
In Google Ads, you can set the desired ROAS for your advertising spend. To do this, go to the Target ROAS for Advertising Strategy and set the necessary settings. The algorithm will work to achieve the set ROAS for the selected conversion.
In Google Analytics, ROAS data is available under Traffic Sources -> Google Ads -> Campaigns, but only if eCommerce reporting is set up.
The ROAS value does not need to be calculated manually, as in the case of ROI. Simply select “Clicks” in the report settings and the “Return on investment in advertising” column will be displayed in the data table.
To determine ROAS in Yandex Direct, you need to know the same numbers as when calculating ROI. That is, go to the report “E-Commerce” – “Orders”.