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What is a good return on advertising spend?

What is a good return on advertising spend?

| 12:06 PM

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.

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