It's important to note that not everything can be measured with quantitative data. For instance, calculating brand awareness and sentiment is much more difficult. And while you can calculate downloads or email sign-ups, those might not always lead to revenue. When we analyse any data, it's important that we consider context and review qualitative data as well as quantitative data.
With this equation, you'll get a ratio that can help you determine whether your ad campaign is working. For instance, if you made $10 for every $1 spent, your ROAS would be 10:1
Depending on the medium, return on ad spend can be anywhere from $4-11 for every dollar spent on advertising. In the graphic below, you can see the ROAS per dollar invested on different media outlets. For each dollar invested in digital search advertising, advertisers gained about 11 dollars, making it the medium with the highest return on advertising spending.