Although KPIs and data do not provide us with the solution to optimize our campaigns, they are undoubtedly essential to understand their progress and, in this sense, announce useful information to evaluate corrective actions to improve their performance.
But let's see what it's all about.
KPI for ADS campaigns
The term ROAS (Return on Advertising Spent) specifically defines the return on advertising investment .
Calculating ROAS is very simple: divide the revenue generated by users of the campaigns by the cost of the ads, multiplying it by one hundred.
ROAS = Advertising Revenue / Advertising Cost
Ideal for constant monitoring of campaigns and for assessing any changes in latvia mobile database budget allocation, ROAS is a KPI that nevertheless lacks a more strategic and commercial vision.
In this regard, the data on campaigns evaluated by ROI (Return on Investment) are arguably more complete. In fact, this measure is used to consider not only simple advertising expenses but also the cost of activities related to their creation and management.
To calculate the return on investment:
ROI = (Total Revenue – Total Cost) / Total Cost
Once we understand how to measure the ROI of our campaigns, we only need to address the key issue of optimizing their performance.