Should I calculate ROAS or ROI?
Asked 8 months ago
Hi, I'm unsure which would be better to calculate with regards to my ad campaigns on Facebook. I want to make sure that the amount of money that I am spending gets closer to the breakeven point and hopefully gets there as well. Which formula do you prefer to use and why?
Thursday, July 21, 2022
Return on Ad Spend (ROAS) shows the profit obtained from an ad campaign. On the contrary, Return on Investment (ROI) gives insight into the overall long-term profit obtained from an investment; it doesn't particularly look at the ads' profit.
So yes! If you want to see the profitability of your Facebook ad campaign, you should look into the ROAS of your campaign. It will give a more accurate short-term representation of your campaign.
The formula to calculate ROAS is as follows:
ROAS = (Amount earned from ads / Amount spent on ads) x 100
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