B2B Marketing Blog

Why Return on Ad Spend (ROAS) is the Golden Metric of Marketing

By Dave Rigotti
Dec 17, 2013
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In the age of big data and analytics, why are so many companies still looking at clicks and submissions to measure their performance? It’s most likely because they’ve lost sight of the bigger picture and the golden metric of marketing.

The goal of all marketing is to increase sales -- even brand marketing, albeit longer into the future. That’s why the golden metric of marketing optimization is return on ad spend (ROAS).

For companies with a short consumer decision journey, take ecommerce sites for example, this is a fairly easy metric to track. However, for companies with a long sales cycle (especially if it’s many months) the revenue is so far removed from the cost that it can be hard to track and even harder to optimize since there are many more variables in play. In this case, projected return on ad spend (pROAS) forecasted from the sales pipeline is the golden metric.

return on ad spend book cover

Continue reading by downloading our latest jam-packed guide, ROAS: The Golden Metric of Marketing which also includes:

  • Calculating ROAS and how it's different from ROI
  • Projecting ROAS for long sales cycles
  • Applying ROAS with multi-touch attribution
  • and so much more
 
AdWords For B2B Marketers  Learn how to drive more revenue with these best practices for AdWords.  Download Now

Topics: roi, roas, return on ad spend, guide, whitepaper

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