ROAS vs. ROMI: And Which Is Better for Your Online Marketing Strategy - PowerPoint PPT Presentation

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ROAS vs. ROMI: And Which Is Better for Your Online Marketing Strategy


Here we are discussing on which is the better online marketing strategy in Return On Advertising Spend and Return on marketing investment (ROAS vs. ROMI) – PowerPoint PPT presentation

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Title: ROAS vs. ROMI: And Which Is Better for Your Online Marketing Strategy

ROAS vs. ROMIWhich Is Better Online Marketing
  • Measure, Understand, Control and Improve are the
    four simple steps for every marketing campaign
    has to go through to reach its goals.
  • Measuring the effectiveness of your online
    marketing campaign is the first step towards
    optimizing it to reach your online marketing
    goals. Everything starts with establishing the
    right performance indicators to make sense of the
    analytics data, thus judge the performance of the
    campaign and then finally make necessary tweaks
    to improve the campaign.
  • So you are spending your dollars on ad campaigns
    and want to measure your ROI, how would you go
    about it? Two ways ROAS ROMI.

What is ROAS?
  • Return on Advertising Spend is the simplest way
    to measure how much a campaign has earned it for
    you. It is the revenue you scored for every
    dollar you spent on your ads. For example, you
    spent ? 10,000 for your Twitter ads of your
    Fountain Pen which generated youre a revenue of
    ? 50,000 through sales.ROAS Return on
    Advertising Spend  50,000/10,000 5According
    to ROAS, you have netted 5 times your marketing
    investment i.e. for every one dollar on your ad
    spend you have netted 5 dollars.Simple math,
    but that is what makes ROAS, a tad banal approach
    to calculate the returns. ROAS only takes your ad
    spend into your accounts and conveniently
    neglects all the other costs that are incurred to
    make the ads creatives and other resources. ROAS
    looks good on paper but it only gives a contrived
    picture of your returns. It can boost up your
    return figures while in reality, the picture may
    not be the same.

What is ROMI?
  • Return on Marketing Investment as the name
    suggests taking the entire marketing spend of the
    campaign to calculate the returns on your
    marketing efforts. Taking a similar example of
    Fountain Pens the investment in ROMI takes
    amount spent of each and every process that went
    into creating and executing the ad campaign
    creatives, ad agency fees, discount offers and
    then cost of ads. For example, assume that all
    the expenses amount to 25,000 thenROMI Return
    on Marketing Investment  50,000/25000 2So
    according to ROMI, for every one dollar of
    marketing investment, you have netted 2 dollars,
    a better and accurate picture isnt it? Sometimes
    ROMI is calculated by taking the cost of goods
    sold into the account giving an even better
    picture of your marketing efforts on your total

ROAS vs ROMI Which is better?
  • While ROAS gives the complete credit to the ads
    ignoring the total costs, ROMI takes everything
    into account to give you a better picture to
    measure the effectiveness of your marketing
    campaigns. ROAS gives a bloated picture of your
    returns that could misdirect you over time
    without giving a reality check. Measuring is all
    about analysing the data carefully and ROMI is
    better equipped to help you adequately measure
    the effectiveness of your campaign.
  • In addition to offering one of Best PPC Services
    in Hyderabad, at Samskriti Business Solutions we
    help all our clients understand the return of
    investment on all our ad campaigns to give them a
    better understanding of the returns on their
    marketing budget, that way we make right
    recommendations that help their reach their
    marketing goals. If you are looking for Best
    Online Marketing Agency in Hyderabad to help you
    with your end-to-end marketing services.

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