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Return On Advertising Spend; ROAS Return On Advertising Investment

Posted: Wed Jan 22, 2025 5:17 am
by Rina7RS
CPC
Advertising cost/number of clicks. For example, if the advertising cost is NT$1,200 and the number of clicks is 120, the CPC is NT$10. If the CPM costs of the advertising campaigns are the same, a higher CTR will result in a lower CPC.

7. Shopping Cart Cost
Advertising cost/number of shopping carts. For example, if the advertising cost is NT$1,200 and the number of shopping carts is 12, the shopping cart cost is NT$100. If the cost of the shopping cart is too high, you can optimize it for CPC and sales pages. Optimizing CPC can reduce traffic acquisition costs, thereby reducing shopping cart costs. Optimizing sales page content to increase shopping cart conversion rates can also help reduce shopping cart costs.

8. Switching costs
Advertising cost/number of conversions. For example, if the advertising bahrain mobile phone number list cost is NT$1,200 and the number of shopping carts is 4, the conversion cost is NT$300. If the conversion cost is too high, you can check the checkout process. Typically one of three adds to the cart will complete the purchase. If it is much lower than this value, it is recommended to check whether the logistics (convenience store store-to-store/home delivery) satisfies consumers, the cash flow (cash on delivery/LINE Pay/credit card swiping) meets consumer habits, and whether there are any problems with the use of activity points. . If there are no big problems with the checkout process, you can optimize it in the direction of reducing shopping cart costs.

Advertising revenue/advertising expenses. For example, if the advertising cost is NT$1,000 and the advertising revenue is NT$3,000, the ROAS is 3. Usually, a higher ROAS means greater advertising effectiveness and a more successful advertising strategy. But high ROAS does not necessarily mean good. Advertisers should set reasonable ROAS goals based on their own advertising goals and budget, and adjust advertising strategies based on actual conditions. For example, if the advertiser's advertising goal is to increase brand awareness, the advertiser may accept a lower ROAS without losing money, because increased brand awareness contributes to long-term business success. If the advertiser's advertising goal is to increase sales for the current season, the advertiser may pursue maximizing the number of orders under a reasonable ROAS benchmark in order to obtain maximum revenue within a limited advertising budget.