Paid Marketing Math & Key Formulas to Maximize $ (Part 2)

These formulas with a math problem-solving (ROAS)​

ROAS is basically a measurement of how much money you generate for every dollar you spend on advertising; you can use this metric to measure the overall effectiveness of your digital marketing efforts or drill down into measuring the effectiveness of a specific campaign or ad group.

The formula for ROAS:

ROAS = Advertising Revenue / Advertising Costs * 100%

For example, if you spend $3,500 on Facebook Ads and earn $8,500, your ROAS will be:

ROAS = 8500 / 3500 X 100% = 242.8%

In this case, the ROAS of 242.8% is a good result. It means that every $1 spent resulted in a $2.43 return.

While some people calculate ROAS as a percentage, others might prefer to express it as a multiple, a ratio, or a dollar amount. So with this example, you can either say that your ROAS is 242%, 2.4x, 2.4:1, or 2.4; these all mean the same thing.