Everyone’s obsessed with clicks, impressions, and video views.
"Wow, my ad got 10,000 views!"
Great. Did any of them turn into paying clients? Have you made back what you spent?
What is Return on Ad Spend?
ROAS is the clearest metric in business. For every $1 you put into advertising, how many dollars did you get back?
If you spend money on Google Ads, and in tracking your sales you discover those ads brought in significantly more revenue, you have a positive Return on Ad Spend.
The Good
When ROAS is positive and significantly higher than your profit margins, you essentially have a money-printing machine. You can pour money in and comfortably know you're expanding your business.
The Bad
It's easy to get distracted by vanity metrics. People brag about how cheap their cost-per-click is. But if those cheap clicks never buy from you, your ROAS is zero. You are losing money. And the longer you focus on the wrong numbers, the faster you go broke.
The Verdict
Track your sales back to the source.
Once you know your ROAS, you're untouchable. You don't have to guess whether a campaign is working, you literally have the math proving it is. Focus on the results, let everything else go.