BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -ROAS equals your total conversion value divided by your advertising costs. “Conversion value” measures the amount of revenue your business earns from a given conversion. If it costs you $20 in ad spend to sell one unit of a $100 product, your ROAS is 5-for each dollar you spend on advertising, you earn $5 back.

Detailed explanation-2: -The more effective your ad campaign is, the more revenue you’ll earn from each dollar spent on the campaign. And as you’d expect, the higher your ROAS, the better.

Detailed explanation-3: -A “good” ROAS depends on several factors, including your profit margins, industry, and average cost-per-click (CPC). Most companies aim for a 4:1 ratio-$4 in revenue to $1 in ad costs. The average return on ad spend, however, is 2:1-$2 in revenue to $1 in ad costs. Different strategies can help improve your ROAS.

Detailed explanation-4: -What ROAS is considered good? An acceptable ROAS is influenced by profit margins, operating expenses, and the overall health of the business. While there’s no “right” answer, a common ROAS benchmark is a 4:1 ratio-$4 revenue to $1 in ad spend.