Online retailers use Return on Ad Spend (ROAS) as way to measure the efficiency of their Performance Advertising programs. This is ironic, as ROAS often works against business needs…and leads to poor budget allocation.
Our latest Espresso Shot video explains why industry best-practice is more flawed than you think. It also explains how switching from ROAS to Incremental ROAS (iROAS) is an important step in the evolution of Performance Advertising:
While the above video explores the basics of incremental ROAS, an open question remains: How can I quantify incremental revenues and iROAS?
At Crealytics, we prefer to conduct incrementality tests. However, these tests can take time. A more short-term, pragmatic solution is to start with educated estimates.
To get you started, we offer you a small incrementality exercise sheet. It contains a simplified case study, and an interactive spreadsheet to help you discover the incrementality of your own PPC campaigns:
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