You know you need to be running Facebook Ads to drive traffic to your website.
Your ads are working and now you’re getting more sales than usual.
You can definitely see the results, but how do you know what is a good ROAS for Facebook Ads?
The average Return On Ad Spend of Facebook Ads should be in the range of 4:1 to 10:1 for advertising to be sustainable and profitable in most cases for eCommerce businesses (400% – 1000% is considered to be a good ROAS for Facebook Ads).
A good ROAS depends on the quality of your adverts and the audience you are targeting.
Having a high ROAS ensures that the business generates enough revenue to cover all expenses and is left with meaningful profits.
What is ROAS?
The most important number in PPC advertising is not your click-through rate and cost per click but your Return On Ad Spend (ROAS).
High ROAS is an important benchmark of a successful Facebook ad account.
The metric tells us how much revenue the business makes for every dollar spent on advertising.
The ROAS is calculated by dividing the revenue by the ad spend of a campaign.
If your ROAS is 8x, it means for every $1 you spend on ads, you make $8 of revenue, which is great!
The ROAS metric is a powerful diagnostic tool for measuring the effectiveness of online marketing campaigns.
It compares the profitability of various online marketing activities as a portion of the advertising budget invested.
Good luck to you with Facebook Ads.
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