Marketers need to stay competitive, but there's more to it than just launching campaigns: it's about crafting invincible marketing strategies that drive revenue and awareness despite evolving market influences.

One crucial metric at the heart of this pursuit is ROAS: Return On Ad Spend.

ROAS, or Return On Ad Spend, is a key measurement of the spend efficiency for any marketing tactic. It's calculated by dividing the revenue generated by a campaign with the total cost spent on the campaign. For instance, if a $1,000 Google Ads campaign yields $2,000 in revenue, the ROAS stands at 2:1 ($2 of revenue generated for every $1 spent).

You might be thinking, "Oh great, one more metric for me to measure," but this is an especially important one. Measuring ROAS matters for several reasons:

It helps you better understand the return on investment (ROI) of your marketing efforts.
It makes it easier to communicate how marketing budgets are being managed.
When it comes time to cut marketing budgets, ROAS helps you quickly cut the tactics and channels that generate the least amount of revenue.
Ultimately, the goal is transforming the marketing department from a cost center into a revenue-generating powerhouse. As a Solution Engineer specializing in Siteimprove's analytics capabilities, I've worked with customers who hadn't seriously considered measuring ROAS or just weren't sure where to start.

Here's how you can actually make use of ROAS in your team.