The Ecommerce Influence Podcast

Two common questions I get from clients are: How much should I spend on advertising and what is a good return on ad spend?

Andrew and I are tackling these questions today by breaking down the calculations you need to do to determine what a good ROAS is for your business.

We also discuss how to have an open conversation with your advertising agency and the first question you really need to ask yourself before you can realistically estimate the ROAS you need to be successful.


Episode Highlights

  • 5:15 The inspiration for this episode: one of the most common questions Austin gets in the Coalition.
  • 6:55 What is a good return on ad spend (ROAS)?
  • 9:08 The first question you need to ask yourself to help determine what ROAS is realistic.
  • 11:05 Why you have to know your math before you start telling your advertising partner what ROAS you “need.”
  • 12:15 The first question you should really be asking to figure out a good ROAS for your business.
  • 13:04 Breaking down ROAS calculation and how to discuss it with your agency.
  • 15:49 The importance of making the distinction between warm and cold traffic.
  • 19:27 A further look at how to calculate the ROAS you need for your business.

Links And Resources

Direct download: EI_226_TooMuchForAdvertising_NoBrex.mp3
Category:general -- posted at: 3:00am CDT