Overview:

ROAS is a performance metric that shows how much revenue is generated for every dollar spent on advertising. To calculate ROAS, we take the revenue from campaign types with ad spend and divide it by the amount spent on those campaign types.

For Attributed ROAS, we only include the revenue that has been attributed to our tracked engagement leads. Currently, this metric applies only to call-based revenue, and it’s dependent on two key data points:

• Campaign types that have ad spend tracked
• Revenue that has been attributed back to those campaign types, which requires that the client is using our tracking and forwarding calls to ST numbers

It’s important to note that we may or may not be managing these campaign types directly—ROAS is calculated as long as we’re tracking the ad spend and receiving the related revenue data.

Formula:

ROAS = Revenue from Marketing Campaign / Ad Spend of Marketing Campaign

Example:

If you made $10,000 in sales from a campaign type that cost $1,000, your ROAS is 10. That means for every $1 spent, you earned $10 back.

Guidelines on Using ROAS:

ROAS is best used at a high level to measure performance. There are limitations when attempting to look at ROAS at a granular level:

• The data used for ROAS is not all in the same timeframe. Ad spend is measured when a user clicks on or interacts with an ad. They may not call and become a lead right away. There are also may be further delays for when the client becomes a job and when revenue is assigned to that job. A customer could click on an ad in one month and turn into revenue in another month, so looking at just one month of data would not capture how much revenue resulted from the ad spent in that month.
• There are also limitations to tracking data that prevent ROAS from being represented completely at the individual campaign level:
  • Paid platforms do not provide campaign-level data for certain call extensions, including:
    • Google Ads dialed call extensions on desktop since there are no clicks associated with this, Google does not provide click data used to identify campaigns
    • GBP call extensions for Google Ads do not provide campaign-level data from Google to our call tracking integration for these leads
    • Microsoft Ads does not provide campaign-level data for any of their call extensions.
    • For these extensions, we have separate static tracked lines, so we can attribute revenue associated with those lines to certain channels, but we can’t tie them to specific campaigns and the spend associated with those campaigns.
  • For GLSA, campaign group mapping is handled differently for different adapters/metrics.
    • For GLSA impressions, clicks, and engagements, these are mapped at the account level. Spend and charged call leads (these are leads according to GLSA and not our engagement tracked leads) are mapped using service category data only available in certain GLSA APIs. Because of this, revenue (attributed via engagement leads) and ad spend may not appear on the same line in marketing tables since they may be mapped to different campaign groups.
  • In RYNOtrax 2.0, you will see these scenarios as campaigns that have revenue but no ad spend under campaign types that do have spend. This revenue gets included in roll-up ROAS calculations because we know that these came from paid sources, even if we can’t determine the specific campaigns that generated them.
    • To avoid seeing these in tables, look at ROAS at the campaign type level for Paid Social and the platform level for other Paid channels.