New ROAS Calculator unveiled for simplified profitability analysis

New ROAS Calculator unveiled for simplified profitability analysis
Ad Profitability Calculator

A new tool from ProfitSpring, a PPC and paid social marketing agency, aims to simplify Return On Ad Spend (ROAS) calculations and improve profitability analysis for small and medium-sized businesses (SMEs).

The Ad Profitability Calculator provides SMEs with a quick and straightforward method to assess the profitability of their Google and Meta Ads campaigns.

Requiring only five key inputs, the calculator streamlines the calculation process. Users simply enter their cost per acquisition (CPA), target profit margin, growth target, and preferred ad platform (Google or Meta).

The calculator then instantly generates a personalized ROAS target aligned with their specific business goals. Additionally, results are sent via email for further reference.

According to ProfitSpring founder Byron Marr, the "tool gives SME owners a quick and easy way to see if their advertising is returning well enough and if not, where they need to get to close the gap to break even or profit." He asserts that the calculator removes "complexity and time it takes to work out these sorts of figures, and having the tool means that anyone can access the output in just a matter of seconds."

Marr further elaborates on the tool's significance:

"On a more tactical level, you have to input these targets now in Google & Meta. Entering too low of a target ROAS can mean blowing the budget very quickly and not seeing a return, too high of a target can mean you don't get any click or sales volume. We need to get the input correct for machine learning bidding strategies to have a chance at getting the output right."

Key Features and Benefits

  • Simplified two-step process: Enter data and receive results quickly and easily.
  • Personalized ROAS targets: Tailored to individual business goals and profit margins.
  • Profitability insights: Gain understanding of current campaign profitability.
  • Improved decision-making: Optimize campaigns with confidence for maximum ROI.
  • Actionable data: Receive clear guidance for campaign adjustments.

By simplifying complex calculations and providing actionable insights, the Ad Profitability Calculator empowers SMEs to maximize their advertising investments. This free tool is intended to assist businesses in making informed decisions that drive sustainable growth and profitability.

Read more