| Category | Value | Rating |
|---|---|---|
| ROAS (ratio) | - | - |
| ROI (%) | - | - |
| Margin from sales (%) | - |
| Category | Value (PLN) | Revenue % |
|---|---|---|
| Total revenue | - | 100% |
| Advertising campaign cost | - | - |
| Cost Of Goods Sold (COGS) | - | - |
| Total cost | - | - |
| Net profit | - | - |
| Category | Value | Rating |
|---|---|---|
| ROAS (ratio) | - | - |
| ROI (%) | - | - |
| Margin from sales (%) | - |
| Category | Value (PLN) | Revenue % |
|---|---|---|
| Total revenue | - | 100% |
| Advertising campaign cost | - | - |
| Cost Of Goods Sold (COGS) | - | - |
| Total cost | - | - |
| Net profit | - | - |
ROAS (Return on Ad Spend) is an indicator that shows how much revenue is generated by each penny spent on advertising. It is calculated as the ratio of revenue to advertising expenses.
ROI (Return on Investment) is an indicator that takes into account all costs associated with an advertising campaign and shows the actual rate of return on the entire investment. It is calculated as the ratio of net profit (revenue minus all costs) to the total investment.
ROAS can give an overly optimistic picture of the situation because it does not take into account costs such as:
ROI provides a more comprehensive picture of a campaign’s profitability and allows for better business decisions.
| Indicator | Good result | Average result | Poor result |
|---|---|---|---|
| ROAS | Above 4:1 (400%) | 2:1 – 4:1 (200% – 400%) | Below 2:1 (200%) |
| ROI | Above 25% | 10% – 25% | Below 10% |
Remember that the optimal ROAS and ROI depend on the industry, business model, and product margin. In the case of low margins, higher ROAS and ROI are required for the campaign to be profitable.