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Answers to Frequently Asked Questions
It is simple! Just add the required values to the ROAS calculator and you will have your Target ROAS. You can use actual values or realistic estimates in these cells.
If it’s lower, you need to work on increasing your conversion rate, quality score (to decrease CPC), and average order value. Or on the business side: increasing your margin and/or the percentage that you’re willing to invest in acquisition.
– If this value is higher than your target from above, you can be more aggressive in your acquisition strategy.
Average cost-per-click (CPC) can be calculated by dividing the total cost of your clicks by the total number of clicks. Your average CPC is based on your actual cost-per-click (actual CPC), which is the actual amount you’re charged for a click on your advertisement.
The average amount spent by each consumer on a single transaction with your store is known as the average order value or AOV. Using the following straightforward calculation, you can get your average order value: Total revenue/number of orders = average order value.