All right today we’re talking about ROAS Return On Ad Spend. This metric is considered very valuable and used all over the place to justify why you should hire an agency and see how your ads are doing.
Why ROAS is not a complete metric?
So we like to say, ask your agency to show you not the ROAS, but ROMAS (Return on Marketing and Ad Spend).
But basically the breakdown of ROMAS includes all the spend, your cost of goods, your agency spend, your consulting spend, your marketing spend, your ad spend, everything. And if romance is positive, is more than one, you’re guaranteed to be making money.