Today we're going to talk about a e-commerce case study, where we get a return (ROASof 915% managing ads on Google for a client in the custom uniforms segment.

First of all, let's explain what it means. ROAS and how to calculate it.

ROAS is different from ROI.

ROAS it means Return on Investment made in paid advertising. It's like a kind of ROI Specifically designed for paid advertising.

While the ROAS measures the effectiveness of ads, the ROI This measures the result of the entire strategy involved. This acronym reflects the conversion value (sales) divided by the cost of all ad interactions.

And it can be calculated by companies of all sizes, so that managers can easily make decisions about which campaigns and channels work best.

How to calculate the ROAS?

To calculate the ROAS, All you need to have on hand is data such as revenue and advertising costs.

Given this, use the formula. ROAS, which is as follows:

• ROAS = (Return on Ads / Advertising Costs) x 100

To make it easier to understand, expenses are considered to be costs directly related to advertising.

This also includes the salaries of the professionals involved and equipment rental, in addition to the amount spent on advertising.

With the calculation of ROAS, This allows you to understand how much you receive for every dollar you spend on advertising. In other words, it's a very interesting metric for evaluating pay-per-click in online campaigns.

Upon discovering the ROAS From a campaign, you can evaluate whether the efforts yielded the expected results and also what can be repeated or discarded.

A smart, practical, and easy-to-understand way to better apply your marketing investments and have your own e-commerce case study.

What did we do to achieve 915% of ROAS?

In this case, when we took over managing the advertising account, we prioritized maximizing the discoverability of the company's products in the regions specified by the client.

Regions that were previously chosen based on internal cost calculations made by the client, as well as areas of operation where the client has exclusive sales rights for certain products.

After creating strategic discovery campaigns aimed at reach, brand recognition, and traffic flow in ecommerce, We launched Smart Shopping campaigns to present products according to each customer's profile, thus reducing the error rate and presenting the right product to the right customer at the right time.

This tactic causes the robot to Google Understand that you should present the ad to the customer profile that is most likely to buy, not just visit the website.

After creating the Smart Shopping campaigns and configuring them as mentioned above, conversions gradually started happening, and little by little we transferred the funds invested in the discovery campaigns to the campaigns that had high conversion rates (sales).

These were simple adjustments we made to achieve the number of 915% of ROAS.

But GAYA agency, how do I know if the ROAS of my campaigns is good?

Come on, one ROAS Considered good, it should be above 2. If it's giving you 1, you're breaking even. Now, if it's less than 1, something is wrong; you should review your campaigns because you're spending too much and getting little return.

With this client, we achieved a ROAS 9.15, which is well above excellent.

In short

Since these two metrics complement each other, it's important to know how to calculate them. ROAS and the ROI to be able to evaluate the effectiveness of their campaigns and strategies.

This greatly contributes to ensuring that your marketing and advertising efforts are always optimized.

After all, nobody wants to create ads only to incur financial losses, right?

And you ensure that your hard-earned money is going to the right places and to the right people. What could be better?

Now it's your turn!

I assume you already know what it is. ROAS So how do you calculate it? Open your ad campaigns, whether in... Google Ads or Facebook Ads, calculate your ROAS And comment below what the amount was.

If the number is not what you would like, please contact us and we can help you with your request. e-commerce case study 🙂

Do you want to increase the results of your advertising campaigns?

Click the button below and speak to one of our consultants right now.