Transparent Growth Measurement (NPS)

Convert your ROAS Target to a CPA Target

As a business owner, you need to be aware that these two KPIs are important for the performance of your business: cost per conversion (CPA) and return on ad spend (ROAS). These two components allow you to analyze account health at a high level and make decisions at the keyword level. Even though the importance of these two KPIs is undeniable, it is quite common for advertising to be unsure which one to utilize.

Cost per acquisition or action (CPA) is a sort of conversion rate marketing. CPA is a digital marketing method for online advertising that lets an advertiser pay for a specific action taken by a potential customer. To calculate CPA, you can use the CPA formula.

Why is it important to know the CPA Target?
  • For ad accounts with two or more ad campaigns, it simplifies the bidding process. You can achieve your advertising objectives with the help of an advanced machine learning system. It suits all types of organizations because it boosts the effectiveness of CPA and CPL.
  • ROAS calculation is crucial for assessing the success of your advertising efforts. It helps you understand how much revenue you’re generating for every dollar spent on advertising. Adjusting your strategy to achieve a specific ROAS target can enhance the overall profitability of your campaigns.

Hmmm… looks like we can help you refine those numbers for better results and profitability!

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7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones! That’s why extending your CLV is essential to a healthy business model & overall business strategy… Don’t believe us? Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.


Why these 7 metrics are significant for your business and should be measured at regular intervals?

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Answers to Frequently Asked Questions

How to know the average order value?

The average order value (AOV) is the average amount of money spent on each transaction by each customer with your store. Using this easy technique, you can figure out what your average order value is: Average order value = total revenue/number of orders.


When it comes to calculating the overall order value, simply divide total revenue by the number of orders to get your company’s average order value.

What is Target ROAS?

“Target return on ad spend,” or “tROAS,” is a Google Smart Bidding strategy that stands for “target return on ad spend.” These are “auction-time bidding” automated bid tactics, which means Google will optimize for conversion or conversion value in every auction you enter.

How to find the target ROAS?

To calculate your ROAS, simply take the revenue from your campaigns, divide it by your ad expenditure, then multiply the result by 100 to get a percentage.

How to calculate ROAS?

Calculating ROAS involves a straightforward yet crucial formula. ROAS, or return on ad spend, is a critical digital marketing metric measuring the revenue generated for each dollar spent on advertising. The ROAS calculation is simply the ratio of revenue generated from ads to the cost of those ads. In essence, it provides a clear insight into the effectiveness of your advertising efforts. 

What does ROAS mean?

It serves as a performance indicator, indicating how efficiently your advertising budget is being utilized to drive revenue. While there isn’t a one-size-fits-all answer to what constitutes a good ROAS percentage, a higher ratio generally signifies a more profitable campaign.

What is a good ROAS percentage?

It serves as a performance indicator, indicating how efficiently your advertising budget is being utilized to drive revenue. While there isn’t a one-size-fits-all answer to what constitutes a good ROAS percentage, a higher ratio generally signifies a more profitable campaign.

Is ROAS the same as profit?

It’s essential to note that ROAS is not synonymous with profit. While a positive ROAS indicates that your advertising generates revenue, it doesn’t consider other operational costs directly. Therefore, maintaining a healthy balance between ROAS and overall profitability is crucial for sustainable business success. 

What is a good ROAS percentage?

Utilizing the CPA formula can complement your ROAS strategy by understanding the cost per acquisition or action, providing a comprehensive view of your marketing performance. In summary, the interplay of ROAS calculation and the CPA formula empowers businesses to optimize their advertising strategies for maximum efficiency and profitability.

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