What is a good return on advertising spend?
Advertising spend can have huge returns for businesses if done correctly. An effective return on advertising spend (ROAS) helps to generate more revenue than what was initially invested. A good ROAS is determined by the amount of profit generated relative to the amount of money spent on advertising. For example, a 5:1 ROAS means a business generated five dollars in profit for every one dollar spent on advertising. Generally, a good ROAS is considered to be 5:1 or higher, however, this can vary depending on the industry and type of product/service being advertised. Ultimately, businesses should strive to achieve a healthy ROAS that is both profitable and sustainable in the long run.read more