The indicator helps to identify working advertising
Posted: Tue Jan 21, 2025 3:26 am
Now we can calculate ROMI: (191,250 – 150,000) ÷ 150,000 × 100 = 27.5%
The ROMI indicator was 27.5%. Accordingly, investments in SEO over the period paid off by 27.5%.
ROAS
(Return on Advertising Spend— is the return on advertising expenses)
ROMI has a narrower focus than ROI and is used to determine the effectiveness of a marketing strategy.
ROAS formula:
ROAS = Ad Revenue ÷ Ad Spend × 100
When calculating ROAS, only expenses for a specific brazil email list advertising tool or channel are considered. tools and eliminate unprofitable ones.
EXAMPLE : We spent 50,000 rubles on contextual advertising of a tutor's services. As a result, we managed to attract five clients, each of whom paid 15,000 rubles for a course of lessons.
We calculate ROAS: (5 × 15,000) ÷ 50,000 × 100 = 150%
ROAS was 150% and the costs of contextual advertising paid off by a similar amount.
WHEN TO CALCULATE ROI (ROMI / ROAS)
Calculating ROI is useful when making management decisions. The indicator can be used to assess the current profitability of a project, which will help avoid costly mistakes when investing in unprofitable projects. ROI helps in choosing the direction of a company's development when it is necessary to identify profitable paths.
The ROMI indicator was 27.5%. Accordingly, investments in SEO over the period paid off by 27.5%.
ROAS
(Return on Advertising Spend— is the return on advertising expenses)
ROMI has a narrower focus than ROI and is used to determine the effectiveness of a marketing strategy.
ROAS formula:
ROAS = Ad Revenue ÷ Ad Spend × 100
When calculating ROAS, only expenses for a specific brazil email list advertising tool or channel are considered. tools and eliminate unprofitable ones.
EXAMPLE : We spent 50,000 rubles on contextual advertising of a tutor's services. As a result, we managed to attract five clients, each of whom paid 15,000 rubles for a course of lessons.
We calculate ROAS: (5 × 15,000) ÷ 50,000 × 100 = 150%
ROAS was 150% and the costs of contextual advertising paid off by a similar amount.
WHEN TO CALCULATE ROI (ROMI / ROAS)
Calculating ROI is useful when making management decisions. The indicator can be used to assess the current profitability of a project, which will help avoid costly mistakes when investing in unprofitable projects. ROI helps in choosing the direction of a company's development when it is necessary to identify profitable paths.