Glossary term
What is Return on ad spend?
Short answer
Return on ad spend, or ROAS, is the revenue earned for each dollar spent on advertising, found by dividing ad-driven revenue by the ad cost.
Return on ad spend, explained for tree service owners
Return on ad spend, often called ROAS, compares the money a campaign brings in with the money it cost. If you spend 500 dollars on ads and track 2,000 dollars of booked job revenue from them, the return is 4 to 1. For a tree service, use only revenue you can clearly link to the ads, such as tagged calls or form leads. Revenue is not profit, so also check your margin before you decide an ad is good. Give each campaign enough time and enough leads to judge it fairly. A campaign that brings many calls but few booked jobs needs fixing, not more money.
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