Most marketers use ROI (Return on Investment) and ROAS (Return on Ad Spend) interchangeably without understanding the true business value of each. Today's digital marketing industry, in which users can be accessed through more channels and devices than ever before, has posed additional challenges. Have advertisers made the necessary adjustments to their metrics in order to optimize online campaigns?
In today's AdExchanger, our Chief Marketing Officer Tim Mayer outlines the differences between the two metrics and explains which will be most important to digital advertisers. Take a look:
“At a conference years ago, I heard Paul Ryan, Overture’s former chief technology officer, debate the benefits of optimizing to the return on investment (ROI) metric vs. the return on ad spend (ROAS) metric. In those days, many marketers optimized paid vs. organic search, and all marketers focused on acquiring leads from a single page – the search page. Ryan advocated the advertiser-centric ROAS metric, reasoning that just one conversion could yield a 100% ROI, but one conversion does not make a viable business.”