Best Practices for Tracking Return-on-Ad-Spend (ROAS)
Return on Ad Spend reports allow marketers to marry Ad Spend data with Attribution/ ROI data. For marketing executives, this is a key concept because many companies spend millions of dollars on ads (literally!) ROAS reports allow you to answer questions like:
- How many impressions on LinkedIN does it take to create a new lead (or opportunity)
- For each dollar I spent last month on an ad campaign -- how many dollars of revenue did I generate?
- Which channel performs best: AdRoll, LinkedIN, Google Ads, BING, etc.?
- What pct of new business originates from Advertising and Pay-per-Click campaigns?
Here's an example of an ROAS report
(showing LinkedIN as a source):
UTM-Tracking / Setup Prerequisites:
In CaliberMind, there's 3 key mechanisms that enable ROAS.
- Setting up a website tracker to track "page visits" and "identify" users when they fill out a webform. We recommend using Analytics.JS.
- Exporting Ad Performance and spend data from your ad platform(s). This data will contain daily spend for each Ad (pay-per-click and/or banner ads). Similar to the data a CFO would use to budget for employees and operational reports, this data is how Digital Marketing managers and CMOs allocate media budget. We have native connectors to most ad platforms For example you may export data from:
- Google Ads
- Tagging your URLs with Ad IDs, Campaign IDs, and UTMs.
In the URL example below, you'll see some query string parameters which are used tag the URL for reporting. This requires discipline and a strong process which needs to be implemented by your marketing team. Additionally, some Marketing Tools (like HubSpot) has the ability to help generate these URLs when building out marketing landing pages. We, at CaliberMind, use HubSpot -- and our team has a pretty rigorous process when setting up each ad. You can see in below, the back-half of the URL has specific Ad and Campaign ID data in the URL's Query String. This parameters are specially to match up to spend and performance data exported from your ads platform.
Marketing URL Example
- utm_source -- which ad platform was used
- hsa_cam -- which campaign id was used
- hsa_ad -- which ad id was used
To change the defaults, we recommend non-advanced users contact their CSM; OR for advanced users you can edit the SQL in the system views directly:
- Response Summary (v_response)
- Performance Summary (v_performance)
- Event: AnalyticsJS (v_event___analyticsjs
- Campaign Summary (v_campaign)
ROAS is a bit tricky to set up but the payoff to your organization's decision-making will make it WELL WORTH YOU'RE WHILE!!