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This is because ROAS is "good" when it serves your company's financial purposes, so there is no average that defines the right ROAS at the campaign, media or sector level in which your business operates. The positive return margin needs to meet your brand's objectives — and you can imagine that, when the ROAS is less than 1 , the campaign is generating less money than it cost to run! But I have other good news for you: you can pause and revitalize a bad campaign through emergency optimizations and evaluations.
If there is attention and experience in Digital Marketing for as long as of losing money are low — while the chances of making a profit are enormous! Tip: Paid Media: what it is, main channels and how to invest Why track ROAS? Middle East Mobile Number List Considering that the success of a Digital Marketing campaign generally seeks an increase in your company's revenue , ROAS alone does not affect the success of the campaign. What ROAS does is demonstrate whether the campaign is healthy from a financial point of view! After all, you can have a huge amount of sales, but also a very high Customer Acquisition Cost (CAC), to the point of eating up the entire profit margin from Digital Marketing! Monitoring and optimizing ROAS is important precisely to ensure that you will achieve your business's financial objectives through advertising campaigns .
This is something that entirely depends on your current strategy ! It may be that a campaign is only aimed at acquiring new prospects — not profit. In this case, this campaign can have a much lower ROAS limit (from zero to negative) that will be covered by other metrics, to give the advertising the freedom it needs to do its job: attract more people while it is running! Profit, in this case, is a medium or long-term consequence, while the immediate objective is to make the business better known and increase the number of people with whom it will be able to communicate in the near future .
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