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Clearbanc Blog
Clearbanc Blog
  • The World of E-Commerce
  • Sales and Marketing
  • Small Business Funding
  • News
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  • Founder Stories
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how to measure roas
  • Sales and Marketing

Expert Round-Up: How To Measure ROAS Effectively

  • November 8, 2019
  • 2 minute read
  • Amanda Levine

E-commerce ad spend increased by 40% in Q2 of 2019 alone. Yet it’s becoming more and more costly to acquire customers online. According to Hubspot research, the cost of customer acquisition has increased by 50% in the last 5 years.

It’s more important than ever to invest your ad spend wisely. But with so many channels to choose from, how do you know which ones are best? It all comes down to knowing how much you’re getting back from every dollar spent across your ad channels. Also known as your return on ad spend.

What is return on ad spend?

Return on ad spend (ROAS) is the metric digital marketers use to determine the effectiveness of their advertising spend. ROAS is key to knowing how to best allocate marketing investment.

How to calculate ROAS

The ROAS calculation is a pretty straightforward one: Divide revenue attributed to advertising by the amount invested.

Revenue / Cost = ROAS

While the calculation itself is straightforward, figuring out how to approach it and activate your findings isn’t. We hear from founders all the time wondering how to calculate and use the ROAS metric more effectively.

So we asked experts at some of our preferred partner agencies 3 questions around measuring and optimizing ROAS:

    1. What’s the best approach to measuring return on ad spend (ROAS)?
    2. What are some tactics e-commerce companies can use to improve ROAS?
    3. Any words of warning when it comes to thinking about ROAS?

Expert round-up: Measuring ROAS effectively

how to measure roas


Poster created using Venngage Infographic Maker, courtesy of our talented friends over at Venngage.

Related Topics
  • ad spend
  • e-commerce
  • facebook ads
  • return on ad spend
  • ROAS
Amanda Levine
Amanda Levine

Amanda is the Content Marketing Manager at Clearbanc. A lifelong learner and educator, she is passionate about helping entrepreneurs and founders realize their dreams. In her spare time she fosters and volunteers with a local dog rescue.

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