Quantifying Marketing Triumphs: Mastering ROI and ROAS

Boost your Digital Marketing ROI and ROAS and discover the benefits of measuring these metrics

We are currently in the new digital era, where online competition is becoming increasingly intense and companies that do not invest in digital marketing run the risk of falling behind and missing out on opportunities for success and growth. Knowing how to invest in Digital Marketing strategies and not dying in the attempt has become a necessity.

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Performance Marketing is a type of Digital Marketing focused on measuring the performance of advertising campaigns. 

This type of digital marketing will help you measure if your investment has a return, loss or gain, using metrics such as ROI and ROAS. Learn everything you need to know about these two metrics to ensure success in your digital advertising.


Unit Economics in Performance Marketing

To understand its importance, we must first talk about the concept of unit economics. This term refers to the relationship between costs and unit revenues in a company. In Performance Marketing, companies seek to maximize their unit economics, which means they seek to maximize unit revenues and minimize unit costs. ROI and ROAS are metrics that help companies achieve this objective.


What is Return on Investment (ROI)?

Return on Investment, better known as ROI, is the indicator that will show you in a very simple way the benefit or loss obtained as a result of investing a budget in carrying out an advertising strategy. In other words, it is the amount of profit obtained after deducting investment costs. It can be expressed in percentage terms and can help determine the profitability of an investment.


What is Return on Ad Spend (ROAS)?

Return on Ad Spend, also known as ROAS, is the amount of revenue generated by an advertising campaign in relation to the investment made. It allows you to evaluate the performance of the investment in Marketing campaigns based on the amount of revenue the business generates for every dollar invested in advertising.

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Benefits of using these metrics

  • Determine investment profitability
  • Identify areas of opportunity and optimize campaign performance
  • Help companies make more strategic decisions about advertising budget 
  • Measure the success of a campaign and justify its investment.


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