Google Ads is a powerful tool that can help businesses of all sizes reach new customers and grow their revenue. But with any marketing spend, it’s important to track your return on investment (ROI) to ensure that your campaigns are providing a positive return. In this post, we’ll show you how to calculate your ROAS from Google Ads so that you can make sure your campaigns are driving profitable growth for your business.
What is ROAS?
ROAS stands for “return on ad spend.” It’s a metric that measures the amount of revenue generated from an advertising campaign divided by the amount spent on that campaign.
For example, if you spend £100 on Google Ads and generate £1,000 in revenue from those ads, your ROAS would be 10x.
Why is ROAS important?
ROAS is important because it allows you to see how much revenue your Google Ads campaigns are generating for every dollar you spend. This metric can be very helpful in determining whether or not a campaign is profitable and should be continued. If you’re not achieving a positive ROAS from your campaigns, then you’re likely losing money on those campaigns and should reevaluate them.
How to calculate ROAS from Google Ads
Calculating your ROAS from Google Ads is relatively simple. First, log into your Google Ads account and navigate to the “reporting” tab. Then, click on “view report” next to the campaign you want to measure. Once you’re in the campaign report, select “ad group” from the drop-down menu at the top of the page (if you’re measuring at the ad group level) or select “keyword” if you’re measuring at the keyword level.
Once you’ve done that, scroll down to the “advanced filter” section and select “conversions” as your metric. Then, enter the time period you want to measure (for example, “last 30 days”) and click “apply.” Finally, divide your total revenue by your total ad spend for that time period to get your ROAS. That’s it!
In Summary,
Google Ads can be a great way to grow your business by reaching new customers online. But as with any marketing spend, it’s important to track your return on investment (ROI) to make sure you’re getting a positive return for every pound you spend. ROAS is a key metric for measuring this return, and fortunately, it’s relatively easy to calculate. Simply follow the steps outlined in this post, and you’ll be able to track your progress and ensure that your Google Ads campaigns are driving profitable growth for your business.
