Skip to main content

For any digital marketer, tracking is an essential part of the job. It allows us to see what’s working, what’s not, and where we can improve. However, tracking is becoming more complex as companies like Apple continue to evolve their privacy policies. As a result channel tracking has become unreliable and most companies are still relying on these faulty trackers.

What is ROAS?

ROAS, or return on ad spend, is a crucial metric for any business that relies on paid advertising to generate leads and sales. Simply put, it measures how much revenue you earn for every dollar you spend on advertising. 

A high ROAS means that your ads generate a lot of revenue for your business, while a low ROAS indicates that your ads aren’t performing as well as they could be.

Blended ROAS

Blended ROAS is calculated from data across all online marketing channels instead of individual channels. This allows businesses to see the total value of their online marketing efforts. But how is Blended ROAS calculated? 

It is calculated by taking the total revenue from all online channels and dividing it by the total cost of all online channels. This number can then be used to compare the performance of different marketing channels.

ROAS vs. Blended ROAS

It gives you a competitive advantage

Using the blended ROAS, you accept that some of the channel’s resources are untrackable. This is not a bad thing because it will give you a competitive advantage; for example, imagine this scenario: Your blended ROAS target is 5x

Facebook ads have a channel-specific ROAS of 4x

Your blended ROAS is 6x with total revenue of $100k

You increase the Facebook Ads spend due to having more blended ROAS available.

While you do this you achieve a channel-specific ROAS of 3x while revenue remains unchanged when reviewing the revenue in Facebook Ads. At first sight, this looked like it was a bad move.

However, let’s review this again with the blended ROAS strategy in mind:

Your blended ROAS falls 5x, but your revenue increases to $130k. Even though Facebook Ads doesn’t report it, this was a good move.

Other companies are still bound to maximize their individual channels and limit their potential even though revenue is out there for the taking.

More room for creativity & experimentation

At first glance, it may seem like there’s little room for error regarding marketing. After all, every dollar spent on marketing needs to contribute directly to the bottom line. 

However, thanks to the blended ROAS metric, a broader look reveals that there is actually a lot of room for experimentation, especially when it comes to less effective marketing channels.  

The surplus revenue from successful campaigns can be used to finance these experiments. As a result, businesses that are willing to experiment with their marketing approach can often find themselves with a significant advantage over their competition which allows extra room for creativity.

The surplus revenue can also be used to create campaigns designed to contribute to branding. Doing so will put your brand values out there and generate future demand.

The result: better strategies, results, and solid brand building!

Keep performance metrics in mind

It’s important to remember that just because you have a surplus of revenue on your Blended ROAS doesn’t mean you can go overboard with your spending. Keep a close eye on your marketing channel metrics on a weekly and monthly basis, as well as quarterly. This will help ensure that you’re keeping your momentum going and not overspending in any one area. By being mindful of your marketing budget, you can avoid any costly mistakes that could set your business back.

Billy Grace

In today’s rapidly changing digital environment, it’s more important than ever to have a data-driven approach to marketing. Billy Grace brings creativity back into marketeers by automating and analyzing the most important data-driven marketing efforts of your store. 

Tracking has become almost impossible due to data tracking restrictions and IOS updates. As a result, everyone is looking at deceitful data. This has led to a situation where marketers blindly trust data that may or may not be accurate. In addition, it has become increasingly difficult to track conversions and ROAS. As a result, many marketers are struggling to justify their spending on digital marketing initiatives. C.

Billy Grace is its own data tracking solution that collects first party data directly and then combines it to create an accurate outlook on your business success.  As a result, you can make better decisions about your business and ensure you’re on track for success. 

No more faulty metrics!

By increasing revenue, saving time, and saving money, Billy Grace boosts your business. Additionally, Billy Grace uses the Blended ROAS metric to further optimize your marketing efforts. Billy Grace is an invaluable asset to any business. 

Whether you’re just starting or you’ve been in business for years, Billy Grace takes your marketing to the next level. 

Go to the website and request a free trial now!

Want to learn more?