Blue Meta: How to Calculate and Increase ROAS

In today's competitive digital marketing landscape, businesses are constantly looking for ways to maximise their return on investment (ROI). One key metric that marketers focus on is ROAS, or Return on Ad Spend. This powerful metric helps businesses assess the effectiveness of their advertising efforts. In this blog post, we'll explain how to calculate ROAS, and more importantly, how to increase ROAS to drive better business results.

At Blue Meta, we’ve worked with hundreds of companies over the last seven years, and one thing we've consistently observed is that many executives struggle with their marketing strategies. Either they know that their marketing works, but they can't pinpoint exactly which campaigns or elements are driving the best results, or they’ve been burnt by sinking thousands into marketing without seeing any measurable business outcomes.

At Blue Meta, we help businesses transform their marketing efforts by creating scalable ecosystems that emphasise measurement, testing, and iteration. We combine a strong understanding of business finance with expert data analysis to help our clients increase ROAS and, ultimately, drive growth.

Let’s dive into understanding what ROAS is, how to calculate it, and how to improve it.

Why is ROAS Important?

ROAS is an essential metric because it directly shows whether your advertising campaigns are profitable. If your ROAS is high, it means your ads are driving significant revenue, and you’re getting good value from your advertising spend. However, if your ROAS is low, it indicates that you’re not generating enough revenue to justify your ad spend, which could be a sign that your marketing strategy needs adjustment.

This insight allows businesses to optimise their campaigns, adjust their budget allocations, and improve their ad creative or targeting to get better results. Simply put, understanding and calculating ROAS allows you to make more informed decisions about your marketing spend, ensuring you’re investing in the right areas.

How to Increase ROAS

Now that we know what ROAS is and how to calculate it, the next step is improving it. Increasing ROAS is crucial to driving better marketing results and maximising the efficiency of your ad spend. Here are several strategies that can help:

1. Refine Your Targeting

Effective targeting is key to improving your ROAS. By narrowing down your audience to those who are most likely to convert, you can reduce wasted ad spend and increase the likelihood of driving meaningful engagement and sales.

With platforms like Facebook, Instagram, and Google Ads, advanced targeting features are available that allow you to reach your ideal customers based on demographics, interests, behaviour, and past interactions with your business. Use these tools to refine your targeting strategy and get your ads in front of the right people at the right time.

2. Optimise Your Ad Creative

Your ad creative, including the imagery, copy, and calls-to-action, directly impacts the success of your campaigns. To improve your ROAS, test different versions of your ads to see what resonates most with your audience. This process, known as A/B testing, allows you to identify which ad creatives are most effective at driving conversions.

3. Focus on Retargeting

Retargeting is a powerful way to Increase ROAS by targeting users who have previously interacted with your business but didn’t convert. For example, you can retarget website visitors who abandoned their shopping cart or people who viewed a product but didn’t make a purchase.

Since these users have already shown interest in your brand, they are more likely to convert the second time around, making retargeting a cost-effective way to increase ROAS.

Conclusion

Calculating and increasing your ROAS is essential for ensuring that your marketing efforts are delivering a strong return on investment. By regularly monitoring your campaigns, refining your targeting, and optimising your ad creatives, you can make data-driven decisions that will help you improve your ROAS and ultimately drive business growth.

At Blue Meta, we combine financial expertise, data analysis, and cutting-edge technology to help businesses like yours create scalable marketing ecosystems that maximise ROI. Whether you're looking to calculate your ROAS, increase it, or simply optimise your marketing strategy, we’re here to help you every step of the way.

If you’re ready to transform your marketing and maximise your ROAS, get in touch with Blue Meta today. We’ll work together to create a marketing strategy that delivers measurable, sustainable results.