knowing if you earn or lose money with your ads on the internet. This way you know if they are performing well or not and you can decide to inject more resources or take your campaigns offline. On ad platforms like Facebook Ads and Google Ads for example you can calculate your business 's ROAS. Both Facebook and Google can calculate ROAS if you enter the conversion value when you install the conversion pixel Facebook or tag Google on your pages. To see how it works in Google Ads click here. Or see what it looks like on Facebook Ads here. But as I'll show you in a moment it's so simple to calculate that you can do it yourself using the Facebook key metrics worksheet created by the KP team for you. Click here to download your spreadsheet.
ROAS only works to check the return on your online campaigns. Any other investment or cost is not part of this calculation. In a moment Phone Number List I will show you how simple it is to calculate the ROAS of your business but first I need to explain the difference between it and another famous indicator since there are many people who confuse the two. What is the difference between ROAS and ROI.
If this relationship between revenue and costs seems familiar to you it's because there is another metric that already does the job: the ROI return on investment whose calculation is your Revenue – Cost Cost X like this: So are ROI and ROAS the same thing since they both calculate the relationship between investment and return. The answer is no. And the difference between them is simple: while ROAS is aimed exclusively at ads ROI considers all aspects of your business such as spending on taxes water bills internet electricity staff salary rent affiliates cancellation of purchase anyway.