ROAS Calculator
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What is "ROAS Calculator"?
It can help you determine a reasonable Adspend to agency fee ratio. A huge mistake Agencies and brand owners make, is not spending enough in Adspend to pay back the retainer fee. The idea of paying a retainer can be daunting, but at times you may find the gap in ROAS needed by an agency as opposed to yourself is small (i.e. to breakeven with an agency you need a 2.1 ROAS, on your own it’s a 2.5…which means the agency you’re working with only needs to produce a 0.4 ROAS higher and they pay back their retainer).
Unique Benefits
Leading Technologies To Help Grow Your Business!
Determine a reasonable Adspend to agency fee ratio
Give you the right amount to advertise
Give you the right amount to advertise
Guidelines
If you’re looking for your “breakeven” ROAS, you’d enter a “1” in the Profit ROI section and if your product margin is 60%, and you’re paying an agency $3k a month, with an Adspend of only $3k the ROAS you’d need to break even is a 3.33. Whereas if your Adspend was $8k, the ROAS to breakeven drops to 2.29. The higher the Adspend ratio to your agency fee, the easier it will be to justify having them around (if they can hit those ROAS targets of course).
