ROAS - Return on Ad Spend
Is the business generated in terms of monetary value vis a vis the amount your spent on running ads across platforms. So, if you spent let’s say 50,000 INR on your ads last month and were able to generate sales worth only 10,000 (or less than 50k) then your ROAS is negative, if sales generated are same as budget then breakeven and if sales generated are more than 50,000 INR then your ROAS is positive.
Whereas,
ROI - Return on Investment is the total amount you put in to start your brand/ business. Now let’s say you invested a Total 10 Lakhs in your business (this includes your fixed cost, inventory cost, packaging cost, logistics and other small miscellaneous things) and so far you’ve not been able to recover this amount of 10L it means your ROI is still negative.
Now a positive ROAS may or may not lead to a positive ROI, similarly a negative ROAS may or may not lead to a negative ROI since you might be able to generate sales from word of mouth, from organic posts and results on the search engine, from some other collaboration.
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