Blended ROAS
As a digital marketer, it's important to track the performance of all your advertising efforts to ensure you're getting the most bang for your buck. One key metric that can help you do this is blended return on ad spend (ROAS), which takes into account the total revenue generated by your advertising efforts across all channels.
Why is blended ROAS so important? Here are a few reasons:
It gives you a holistic view of your advertising performance: Measuring the success of your advertising efforts in silos (e.g., only looking at your Facebook ads or your Google ads) can lead to a skewed understanding of your overall performance. Blended ROAS allows you to see how all your channels are contributing to your bottom line, so you can make informed decisions about where to invest your ad dollars.
It helps you optimize your budget: By seeing which channels are generating the most revenue, you can adjust your budget accordingly to maximize your ROI. For example, if you find that your Google Ads are driving the majority of your revenue, you might decide to allocate more of your budget to that channel.
It provides insight into customer behavior: Blended ROAS can also give you insight into how your customers are interacting with your brand across different channels. For example, you might find that customers who engage with your Facebook ads are more likely to make a purchase than those who come to your site through organic search. This information can help you tailor your advertising strategies to better meet your customers' needs and preferences.
So how do you calculate blended ROAS? It's actually quite simple. Here's the formula:
Total Revenue / Total Ad Spend = Blended ROAS
For example, if you generated $100,000 in revenue from all your advertising efforts, and you spent a total of $20,000 on those efforts, your blended ROAS would be:
$100,000 / $20,000 = 5
In other words, for every $1 you spent on advertising, you generated $5 in revenue.
To ensure you're accurately tracking blended ROAS, make sure you're using the same attribution model across all your channels. This will allow you to see how each touchpoint along the customer journey is contributing to your overall revenue.
In conclusion, measuring blended ROAS is critical for digital marketers who want to optimize their advertising budgets and get the most out of their advertising efforts. By taking a holistic approach to tracking your advertising performance, you can make data-driven decisions that will drive revenue and growth for your business.
