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Marketing Keywords to Know: October 23, 2014

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ROAS

Definition: Return on Ad Spend, a basic metric used to measure the effectiveness of a marketing campaign

Are you utilizing SEO to get the best Return on Ad Spend for your campaign?

 

Simply put, ROAS is a way of tracking the profitability of an online advertising campaign. A formula to track Return on Ad Spend is Revenue/Spend. This means that if you spent $5,000 on an ad campaign and generated $20,000 as a result, your ROAS would be $4:1 ($20,000/$5,000). For every one dollar you spent, you’re generated $4 in return. The higher the revenue from your campaign, the better!

To make sure you are generating enough profit from your campaign, SEO becomes very helpful. It allows your company (or its services) to be bumped up in search results, making it easier to find for the consumer. Not only that, it’s a budget-friendly option for those who don’t want to spend a lot on the ad campaign itself. It’s been proven that leads that come from Google searches hold more weight than those of paid leads!



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