Back

How does ROAS help my lead generation campaign?

If you’re still unsure about where to start, we can help.

With our free tips and guidance, you can build a better digital marketing setup. But if you don’t have the time or resources to manage it all on your own, we can support you. Get in touch to find out how.

Contact us

ROAS (return on ad spend) is a metric that allows you to set a conversion value you want for the amount spent on your ad. Once set, google optimizes your ad bids (amount paid for a keyword) to realize your expectation.

This metric help business running lead campaigns to see the bigger picture of their campaign. With it, they can determine if their ad provides the returns they want and the following action to take.

How does it work?

Target ROAS is a percentage-based strategy that requires past ad campaign data and conversion tracking to secure the best outcome in conversion value.

To exploit this strategy, you need to calculate what your target ROAS should be. You can easily determine this from your best-performing ad campaign under the Conv. Value / cost column.

Alternatively, you can do the same by calculating (amount) sales ÷ (amount) ad spend x 100.

Example

If your target in returns is $200 for each $50 spent, your target ROAS will be 200 ÷50×100= 400%.

 Support Services

Explore our services to see how we can support you.

We work with clients of all sizes, ambitions, and expectations, and with budgets that start from as little as £150pm to over £1.5m each year. Explore our simple-to-understand packages that take the pressure off, so that you can focus on what you do best.

Explore Services

Things to be mindful of in ROAS?

Tracking

You need conversion tracking enabled to guarantee returns on your investment. Google won’t know if its actions result in the results you are after and when to adjust your bids to better your outcome without this.

 

Previous data

To make this metric suitable for your lead efforts, you need to have data from a recently concluded ad campaign with at least 40 to 50 conversions within a month. This enables google ads to make more intelligent decisions on your bids to maximize returns.

 

Realistic ROAS

Starting on your new campaign, you shouldn’t set your ROAS too high. This will restrict Google from testing and driving the most conversion value for your ad. Start a bit lower and optimize as you go. So, if your top-performing ad return is $50, you should start somewhere around $40.

Get a free website health-check.

Find out if your website is depriving you of visitors. Request our free website health-check to identify common issues with speed, user experience, and performance. We’ll deliver this in a clear report along with some basic recommendations and quick fixes.

Learn more about health-checks

    By clicking ‘Submit’ you agree to our terms and conditions and privacy policy. Click here to find out more about we handle your data.

    Frequently asked questions

    • Target ROAS improves your ad to achieve the desired profit from your investment. It is usually calculated as a percentage, but it requires conversion tracking, historical data, and realistic expectations. You can click here to learn more.

    • Maximize clicks is an automated bidding strategy that helps businesses drive the most click-throughs on their ads call-to-action while spending their daily budget. Click here to explore strategies for boosting your sales.

    • Maximize Conversion automatically adjusts bids based on lead performance, ensuring optimal results for your budget. To delve deeper into this strategy, click here for more insights.

    Related Content

    Loading...

    Start a Conversation

    Request a call-back to see how we can support your digital growth.

    Get a call-back