How do you calculate return on ad spend (ROAS) in Google Ads?

Started by 1mbh7ghsyd, Jul 14, 2024, 08:39 AM

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How do you calculate return on ad spend (ROAS) in Google Ads?

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Return on ad spend (ROAS) is a metric that measures the revenue generated by your advertising campaigns relative to the cost of those campaigns. In Google Ads, you can calculate ROAS by dividing the revenue generated by your ads by the cost of those ads.

Here's the formula for calculating ROAS in Google Ads:

ROAS = Revenue generated by ads / Cost of ads

For example, let's say you spent $1,000 on Google Ads in a given time period, and those ads generated $5,000 in revenue. To calculate your ROAS, you would divide the revenue by the cost:

ROAS = $5,000 / $1,000 = 5

This means that for every dollar you spent on ads, you generated $5 in revenue.

To view your ROAS in Google Ads, you can use the "Conversions" or "Shopping" campaign types. Here's how to view your ROAS in Google Ads:

1. Sign in to your Google Ads account.
2. Click on the "Campaigns" tab in the left-hand menu.
3. Select the campaign you want to view.
4. Click on the "Columns" button at the top of the page.
5. Select "Modify columns" from the drop-down menu.
6. In the "Performance" section, select "Conversions" or "Shopping".
7. In the "Conversion" or "Shopping" section, select "Return on ad spend (ROAS)".
8. Click on the "Apply" button to save your changes.

Once you've added the ROAS column to your view, you can see the ROAS for each campaign, ad group, or keyword. Keep in mind that a higher ROAS is generally better, but it's important to also consider other factors such as cost per conversion and conversion rate when evaluating the performance of your campaigns.

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