How to measure online advertising results: ROAS, CPA and monthly report
Digital DopeA report full of numbers is not a useful report. To make decisions, you need a few indicators, linked to the company's objectives, read with the same frequency.
The indicators that matter
- CPA (cost per acquisition): how much it costs to acquire a customer or a sale.
- CPL (cost per lead): how much a contact costs; it should be read together with its quality.
- ROAS: how much revenue is generated for every euro spent on advertising.
- Conversion rate: how many visits become requests or purchases.
- Average order value: how much customers spend on average.
ROAS and margin
A high ROAS is not necessarily a good result: it must be compared with product margins. The minimum return to avoid losing money is calculated, and the goal is to exceed it.
What a monthly report should contain
- What happened: spending, results, costs.
- What worked and what didn't.
- What we will change the following month and why.
- What is needed from you, for example new offers or materials.
Clean data, better decisions
Tracking must be correct: events, conversions, and traffic sources. Without reliable data, every decision is a gamble.
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Digital Dope is a Shopify Partner and Meta Business Partner, among the leading Shopify partners in Italy.