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Measuring Marketing
book

Measuring Marketing

by John Davis
December 2017
Intermediate to advanced
390 pages
7h 51m
English
De Gruyter
Content preview from Measuring Marketing

Chapter 74 Return On Advertising Spend

Measurement Need

To measure how much profit is made from advertising.

Solutioni

Return on advertising spend (ROAS) is calculated as follows:

ROAS= A C

Where

ROAS = return on advertising spend

A = advertising revenue

C = cost of advertising

An ever-growing percentage of global advertising investments are in digital and social media. To attract customers through an online/digital campaign for their food delivery service, a Singapore company spent $12,000 on a Facebook promotional campaign that produced $18,000 in additional revenue, resulting in a $.50 ROAS:

ROAS= $18,000$12,000 $12,000 =$.50

Impact

Return on advertising sales helps marketers decide if an advertising ...

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Publisher Resources

ISBN: 9781501507229