According to RTB House, we need to analyze these carefully to design truly profitable campaigns three pillars Advertising ROI:

1) The conversion cost per segment

Yes, it’s all about calculating how much it costs you to attract each segment of users. For example in the industry Ecommerceyou have to analyze the number of visitors, buyers (those who complete the purchase, those who return …) and the non-buyers (those who abandon the cart, those who have never bought a product …).

2) The ROAS (Return on Ad Spend)

ROAS is a metric offered by Google Analytics that makes it possible to determine the return on advertising spend, or the percentage of revenue generated in relation to the investment made in advertising. It is calculated by dividing income by total expenses. So if you get five for every dollar invested in advertising, your ROAS is 500%.

“It’s data to know how much investment is needed to be profitable and where to focus time and budget for marketing efforts. If it is possible to determine in which scenarios we will have to pay more for each conversion in order to get a higher profit, we will optimize the existing budget to make the investment more meaningful,” they explain from RTB House, recalling a Maxim that is always fulfilled: “The overall ROI will have better chances with each subsequent campaign.”

3) Results per device

Yes, it’s important not to forget what works best and what doesn’t when we talk about computers, mobile phones or television. Analyzing formats and channels separately to get individual ROAS helps when planning separate advertising campaigns or cross-device campaigns (cross device) that are closer to business goals.

Although RTB House warns, “we must not forget that the end result of a campaign is usually more complex than the sum of its parts. When multiple channels, providers, and methods are used in a complementary manner, campaigns can deliver better results. Measuring these results (e.g., conversion cost per segment) is the tricky part, but the most rewarding part when it comes to accurately describing a campaign’s effectiveness. Knowing which channel or technology vendor contributed to the bottom line (ROAS and devices) allows better marketing strategies to be planned and executed. And that wouldn’t be possible without knowledge of marketing metrics.”


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