Online Store – ROAS
Estimation of Return on Advertising Spend (ROAS), also known as return from advertising expenses, is one of the most important indicators for companies investing in digital advertising. Thanks to estimation, agencies can better present predictions of campaign effects for their clients, which can significantly support the sales process. In this guide, we will discuss how to prepare an accurate ROAS estimate and how its inclusion in the offer may convince a client to cooperate.
1. What is ROAS and why is it important?
ROAS is a measure that says how much a company earns from every dollar spent on advertising. The higher the ROAS, the better the efficiency of the advertising campaign. In estimation, we are talking about predicting this measure based on previous results, market analysis, and campaign goals.
2. What benefits can a client get from an ROAS estimate?
Preparing a detailed ROAS estimate can help a client in:
* Understanding potential results: The client will have an idea of the effectiveness of the campaign before its start.
* Building trust in the agency: A detailed estimate shows professionalism and data analysis skills of the agency.
* Evaluating profitability: The client can better understand whether advertising is worth investment and what real profits may be.
3. When is it worth preparing a ROAS estimate for a client?
ROAS estimation is particularly useful in the following cases:
* New campaigns: If the client launches a campaign for the first time.
* Large advertising investments: When the client invests large amounts, it’s good to present forecasts to increase their confidence.
* Acquiring clients from competitive industries: Clients with high market competition need assurance that their investment in ads will be profitable.
4. How to prepare an accurate ROAS estimate?
Preparing an accurate estimate requires several steps:
1. Historical data analysis: Check the previous results of your agency for similar industries.
2. Client segmentation: Tailor the estimate to specific segments of the client’s market.
3. Advertising budget inclusion: The higher the budget, the easier it is to achieve high campaign efficiency.
4. Seasonality analysis: Analyze seasonal data for a given industry.
5. Competitor prediction: Include market changes, especially in rapidly changing industries.
5. How to present ROAS estimate to a client?
When presenting an ROAS estimate, it’s crucial to:
* Maintain a simple and clear format: Focus on conciseness, showing forecasts visually using graphs and tables.
* Show realistic, not exaggerated results: Don’t exaggerate projections; better stick to caution.
* Add explanations of how the ROAS was calculated: Showing the calculation process increases trust in your offer.
6. Using ROAS estimation in sales process
Including an accurate ROAS estimate in your offer can be a competitive advantage. Thanks to it:
* You will convince clients about the profitability of investment: The estimate works as a profit prediction, which may reassure the client.
* You will build a competitive edge: Agencies offering ROAS estimates stand out from others.
* You will make sales easier: With well-prepared estimates, clients are quicker to decide on cooperation when they see potential benefits.
Summary
Preparing an accurate ROAS estimate and including it in your offer is a successful strategy supporting the sales process. It shows the client potential profits, builds trust, and facilitates decision-making about cooperation.
