Subcribe And Share :

Subcribe RSS Feed Twitter icon facebook icon More share social bookmark service

Friday, July 16, 2010

Predicting ROAS and Launching Better PPC Campaigns

image Return on Ad-Spend, or ROAS, is a metric calculated by dividing the revenue generated from an ad campaign, by the cost of that campaign. It can be applied to any sales situation that has an advertising spend, even a bake sale:

Lets say your mother gave you a pan of brownies to sell at the bake sale, but it costs $50 to get your booth and marketing materials set (we’ll call $50 your ad-spend).

If your brownies manage to produce a total revenue of $50, you’ve broken even, or gotten a full return on your ad-spend.

If you had made the brownies yourself, and they’d cost you $50 to make (we’re talking primo brownies here), then your total investment is actually $100, but ROAS only takes into account ad-spend. So in the same situation you’re still getting a full return on your ad-spend, just not a full return on your investment.

A handy exercise to go through with new clients before you launch a PPC campaign is to calculate the potential ROAS of the keywords you’re targeting. ReadMore..

demo template blog and download free blogger template feature like magazine style, ads ready and seo friendly template blog
DheTemplate is galleries new free blogger template with a good design and layout include feature ready added for your blog. DheTemplate.com - NEW FREE BLOGGER TEMPLATE EVERYDAY !!

0 comments:

Post a Comment

Advertise

Title 1

Title 2