Rather than calculating investment compared to returns, this formula focuses on your ad campaign’s efficiency and effectiveness.

You want to measure impressions and brand awareness, so this process isn’t as clear-cut as straight-up sales and numbers. In this case, ROI is not the most effective formula for getting a solid gauge of your digital advertising success.

What Is Return On Ad Spend (ROAS)? Why Is It Important?

ROAS is a metric that measures the success of digital advertising campaigns, which then helps guide your evaluation of advertising methods; media that is working, messages that are resonating, where to improve—and how it all adds to your bottom line.

When you understand your ROAS, you can better plan for future budgeting and refine your strategy to incorporate more of what is proven to work.

To learn more about a bidding strategy in Google Ads using Target ROAS, click here.

How Is ROAS Calculated?

Not all of us are math enthusiasts, so if math isn’t your thing you will be relieved to know that the formula for calculating ROAS is surprisingly simple: Just divide the revenue gained from your ad campaign by the dollar amount spent on that specific advertising.

How To Calculate ROAS – A Simple Guide

The following examples on how to calculate ROAS assume that you are able to manage your current advertising campaigns or that you have a digital marketing agency that will work with you and help you optimize and be transparent with data, like Direct Online Marketing.

Here’s An Example Calculation For Return On Ad Spend:

In February, Bon Voyage Travel spends $5,000 on a digital ad campaign.

• The campaign results in revenue of $15,000.
• $15,000 revenue divided by $5,000 ad spend = $3
• ROAS = $3 or a ratio of 3:1

For every dollar that Bon Voyage Travel spends on the ad campaign, the return is $3 in revenue.

What Are Some Ways You Can Improve Your ROAS?

If you’re looking to improve your ROAS metric, here are a few tips to keep in mind.

1. Make sure that you’re accurately tracking all of your sales data. This includes both online and offline sales.
2. Segment your data by campaign, product, or other relevant criteria. This will help you to identify areas where you need to improve your ROAS.
3. Set realistic goals for your campaigns.
4. Test different strategies and tactics to see what works best for your business.
5. Don’t be afraid to adjust your goals as needed.

By following these tips, you can improve your ROAS metric and reach your desired level of profitability.

Don’t Forget There Are Some Hidden Costs You Can Apply To ROAS!

Getting the most accurate ROAS means ensuring your calculations are comprehensive. All of the associated costs of your ad campaign should be included, otherwise you’ll get an inaccurate result that could make your ROAS seem better than it is.

Common hidden costs that impact calculating ROAS include:

• Staff salaries
• Ad development
• Third-party vendor charges
• Affiliate commissions

There isn’t a definitive right answer when it comes to what your ideal ROAS should be. The benchmark tends to be around a 4:1 ratio, but ultimately, this depends entirely on your circumstances, your goals, and your business. Achieving your ideal ROAS takes into account your ad campaign goals and strategy, a set budget, and a focus on a targeted strategy of select advertising mediums rather than an attempt to use them all at once.

Ready for an advertising campaign that gives you the best bang for your buck? We can help with that. Our team of geniuses, strategists, and digital advertising experts are on standby, ready to create impactful advertising campaigns that sell your audiences on who you are, so you can sell your products and services.

The post What Is ROAS? How is It Calculated? appeared first on Direct Online Marketing.

If passed, the bill would cause a major change in how agencies like ours and companies like yours would be able to target advertisements online. Instead of being able to use the data collected by tech companies to personalize your messages to the right customers, BSAA would limit your options to something simple, like broad location targeting.

In essence, the personalized advertising you have gotten used to in social media and search engines would be limited to a contextual advertising application, more comparable to buying a billboard on the side of the road. In other words, advertisers couldn’t target people by even the most basic demographic factors, let alone interests or habits. Suddenly the ads you see would be a lot less relevant or interesting.

BSAA would give the Federal Trade Commission and state attorneys general the ability to enforce this limited ad targeting. On top of that, users of the platforms would also be able to sue them for up to $5,000 in compensation per violation. This bill is part of an ongoing effort in Congress to regulate the tech industry’s position on things like the spread of misinformation and privacy of protected class information.

Regardless of the likelihood that the bill passes, the simple fact that it is even up for consideration this legislative session has spurred a lot of discussion here the last few days.

Before Moving Forward… Take A Look Back

So what could this actually mean?  Let’s start with a history lesson.

I haven’t been involved in digital advertising from the very beginning, but not too far from it.  My first year was 2001, back in the days of goto.com (the predecessor to the predecessor to Yahoo! Search Marketing) and the genesis of Google Ads (née AdWords).

Those times were exciting, living in the Old West of digital marketing and advertising.  No blueprint for any of the mechanics existed, even though the basic rules of marketing and human psychology remained.  Everyone involved was experimenting and learning what worked.

This was the Dot Com era where new startups popped up everywhere.  You might ride the waves to fortune or come to work one day and find the doors chained.  In this environment of chaos, you had really smart people doing some really innovative things…and some bad actors pushing limits amorally at best.

There were no such things as privacy concerns.  I would tell college classes complaining about how the government knew about them that they should be way more concerned about Facebook and Google who knew way more about them and – at least at the time – had sterling reputations.  Facebook had ~10,000 different data points on its average US user and advertisers could leverage most of those.

And there were separate networks doing even creepier things with data.

I am not a futurist.  I’m wrong all the time (ask my wife), but the one thing I warned colleagues about was that if the industry didn’t start regulating itself, governments would.  And that’s exactly what happened.  You’re familiar with GDPR, but so many other changes large and small have happened.

Some of these changes have been good, some bad, and many a mixed bag.  Often they have consolidated more power in the hands of the biggest players.  But the industry has no one to blame but itself for not self-regulating.

What the Banning Surveillance Advertising Act Would Mean

Cards on the table: my livelihood – and that of my family and DOM team members – all depend on digital advertising.  I’m not an unbiased source.  But I always try to view issues from as many sides as possible.

I believe the proposed changes would be disastrous.  Not just for the platforms, advertisers, and agencies, but for the general public.

A few years ago the US government started putting heat on the industry for targeting consumers in certain sectors.  At the time advertisers could target disadvantaged communities and groups with ads for housing, banking, employment, and a few other sectors – and these capabilities were absolutely exploited.

Worried about the legal ramifications, the major players did what they always do and made changes in an attempt to avoid the scythe that would split the cash cow.  The end result?  Well, some of the ways slimey advertisers exploited groups stopped – or at least were made more difficult.  Yay!

What it also did was make it much harder for legitimate businesses using information they know about their potential customers and employees to reach them in a cost effective way.  Boo.  We can tell you from first hand experience that advertising job openings and other career opportunities is much more difficult with Google and Facebook than it used to be.

The net effect: it’s harder for people and companies to find each other.  It also has larger economic implications.  When it costs more for companies and organizations to find customers and employees, they either have to cut costs from somewhere (e.g. in the value they offer) or raise pricing to hit their sales numbers.

What’s Going to Happen?

This bill is a huge overreaction to legitimate concerns. It’s wielding a giant battle-axe when a scalpel is appropriate.  (Geez – what is with my sharp weapon analogies in this post?)

Its potential is scary enough that the major players and data brokers will lobby and do a public relations push.  We’re already seeing that.  As an owner of one of Google’s top 200 partners around the world, I received an email Wednesday inviting our team to Privacy at Google On-Demand, a three-week series of webinars all about Google’s privacy efforts.

I also expect that Google et al will make more changes to their platforms, mainly in what levers advertisers can pull.  Because Google is really smart and good at what they do, they’ll continue to make advertising profitable for smart marketers.  The net effect won’t be to make Google weaker, but stronger as their moat will just get bigger and more alligator-infested to keep the competition out.

But if the government or the platforms go to the extreme?  It’s the advertisers and, yes, the consumers that will suffer.

Interested in having a conversation with me or one of our digital marketing experts on how this may impact your advertising based campaigns in search or social media? Please contact us.

Interested in diving a little bit deeper into issues related to digital marketing and privacy regulations? Check out one of these helpful resources:

• Digital Marketing and Privacy Laws: The GDPR and You
• Google’s Housing, Employment, and Credit Advertising Policies: What Do They Mean for You?
• Not Knowing The Letters “A-L-T” Could Cost You $6 Million

The post Should Advertisers And Consumers Worry About the Banning Surveillance Advertising Act? appeared first on Direct Online Marketing.

With the MLB season getting underway on April 5th, millions of baseball fans are beginning to draft in their fantasy baseball leagues. Baseball is the second most popular fantasy sport behind football and has a huge following. Unlike football, baseball has a much longer season which gives fantasy owners more time to make adjustments and build a winning team.

In the sections of the below, you will see comments from Leland Reed (LR) and Stephen Hoops (SH), who happens to be the newest member of the Direct Online Marketing team writing his first post for us! All of the following opinions belong to us and none reflect the feelings of Direct Online Marketing as a whole.

We decided that it would be a fun idea to write a blog comparing 9 of the biggest online advertising platforms to 9 players that you should pay attention to when drafting your fantasy team. You’ll have a few of the fantasy superstars and maybe a few surprises, too.

Instagram

Instagram is the young and flashy entry in online advertising. It has exploded in popularity and brands are finding value in both paid ads and organic posting. It has already cemented itself as one of the most popular social networks and is sure to do the same when it comes to advertising.

LR: I knew I had to pick someone who was young and flashy to go here so the easy and obvious choice is Mike Trout. Trout took Major League Baseball by storm in 2012 putting up numbers that had never been seen before.

He won Rookie of the Year in 2012, finished 2nd in MVP voting in 2012 and 2013, and finally won the AL MVP in 2014. Like Instagram, Trout exploded onto the scene and shows no signs of slowing down.

SH: With some indications that Instagram is on the verge of becoming the next big platform to watch in social media, pitcher Noah Snydergaard just might be one of the top breakout pitchers to watch from the National League.

Although currently in the Minors, the 22-year-old Texas native’s numbers at the end of 2014 show signs that he is destined for greater things. His record from last year may not be perfect, but with 145 strikeouts, it is hard to ignore what he could do in the Majors. The Mets may call him up sooner than later, so look out for him on the waiver wire.

Pinterest

Pinterest was a tough platform for us to find a comparable player because of how new everything is. The only thing we could think of was the larger female user base and decided to make Pinterest our heartthrob category.

LR: My pick is Buster Posey. Other than being a pretty good looking guy, he can flat out play baseball. He is probably the best catcher in the league and has been the leader of three World Series winning teams. He also just got voted the Face of Major League Baseball. Not a bad start for someone who has only been in the league for five years.

SH: While the demographic using the platform is still more skewed towards a largely female audience, Pinterest is definitely a platform you should at least be familiar with. To round out your draft, you’ll need a shortstop.

Washington Nationals’ Ian Desmond should be your guy. Ranked #3 among shortstops, it’s also hard to deny that…he’s a beautiful man.

Snapchat

Snapchat seems to have taken the world by storm in both a positive and negative way. It is a great way for brands to connect with audiences in a way that was not possible in the past, but it has also opened the door up for misuse from underage kids and the inclusion of SnapCash was looked at as a questionable decision. Even with the negative aspects, there is no denying how popular the social network has become and now that brands are discovering ways to advertise with it, it will only continue to grow.

LR: In baseball, there are a lot of polarizing figures, but none have split fans the way Yasiel Puig has. I’ve found that most fans either love or hate him. I actually think he is great for the game. He plays so hard and brings young energy to the game.

This article from Tomas Rios is a great example of why Puig is loved by some and hated by others, when they should just be enjoying what he has to offer the game, which is extraordinary talent and athleticism, along with charisma that most baseball players do not have.

SH: The ever controversial Snapchat is seeing phenomenal growth among younger demographics and may soon rival the other players.

At 21-years-old, the Texas Rangers’ have got a real potential weapon at 2^nd base. Having only played one year of pro baseball, Rougned Odor is showing he can hang with the big boys.

Right now, he is more of a defensive force, but his offense did show signs of promise last season. Just like Snapchat, if Odor’s improvement continues at this rocket ship pace he will be a true force to contend with.

Tumblr

Tumblr is a bit of a wild card when it comes to online advertising. The audience is definitely there, but the fashion industry seems to be the only people that are taking advantage of the benefits. When someone figures out how to take Tumblr to the mainstream, it will explode in popularity with regards to advertising.

LR: Like the Heyward pick in part one, I’m a little biased, but I think that a real wild card for this season could be Jose Peraza of the Atlanta Braves. Peraza may not start the 2015 season in the Majors, but it is hard to believe he will not end up there.

After two minor league promotions and the Braves’ Minor League Player of the Year award in 2014, the only thing Peraza is lacking is big league experience. It will be feast or famine with him. It is so hard to predict what a player with no major league experience will do, but if I was in the last few fantasy draft rounds and I saw Peraza sitting there, I would take a chance.

SH: Yahoo’s acquisition has yet to figure out how to scale appropriately and grow its user base, Tumblr’s current audience has a high percentage of heavy users. It’s hard to say where Tumblr will go from here but if approached the right way could be an absolute gold mine.

For this pick you’ll have to be willing to take a risk if you want to have an edge over your competition. While splitting his time between the minors and the Washington Nationals, Steven Souza Jr. of the Tampa Bay Rays is projected to do some big things. He’ll kill you with his batting average, hitting only .130 in limited appearances in 2014, but he has above average power and by the end of the season, he could be a valuable filler pickup that could end up winning you your league. Without playing enough games in the majors it’s really a gigantic crapshoot. Listen to your gut.

So there you have it, our final 4 position picks for the 2015 fantasy baseball season. We hope you enjoyed reading both parts of the blog and hopefully this is helpful not only with your fantasy teams, but with online advertising as well. Have suggestions or changes to either of our teams? Be sure to let us know about them in the comments!

The post If Online Ad Platforms Were Baseball Players—DOM’s Starting Lineup – Part 2 appeared first on Direct Online Marketing.

With the MLB season getting underway on April 5th, millions of baseball fans are beginning to draft in their fantasy baseball leagues. Baseball is the second most popular fantasy sport behind football and has a huge following. Unlike football, baseball has a much longer season which gives fantasy owners more time to make adjustments and build a winning team.

In the sections of the below, you will see comments from Leland Reed (LR) and Stephen Hoops (SH), who happens to be the newest member of the Direct Online Marketing team writing his first post for us! All of the following opinions belong to us and none reflect the feelings of Direct Online Marketing as a whole.

We decided that it would be a fun idea to write a blog comparing 9 of the biggest online advertising platforms to 9 players that you should pay attention to when drafting your fantasy team. You’ll have a few of the fantasy superstars and maybe a few surprises, too.

Google

With Google’s advertising platforms, you know what you are getting. It’s a product that consistently works and works well. Search, Display, Video, and Retargeting are all in Google’s wheelhouse, which makes it not only the one of the best options for online advertising, but one of the most versatile, as well.

LR: It is the superstar of PPC and that’s why for my comparison, I chose Tigers 3B Miguel Cabrera.

Cabrera has received too many accolades to list here, but one thing is for sure: he is the premier hitter in the game. He won the Triple Crown and MVP in 2012 and followed that up with another MVP in 2013. 2014 was a down year for Miggy, but there is no doubt that he is one of the biggest stars in baseball and is sure to bounce back in 2015. You can’t go wrong using your first pick in your fantasy draft on him.

SH: I chose someone who has been as consistent as it gets over the past few seasons, Pablo Sandoval. Now donning a new uniform in Boston, the “Kung Fu Panda” is a solid choice. Although only ranked #9 overall amongst other third basemen, he’s got experience in spades.

Just like Google AdWords, Sandoval has got the numbers to back up his value. With 3 World Series wins under his belt, it’s clear he’s been an integral part of multiple organizations hell-bent on success.

Bing

We constantly tell our clients that Bing Ads shouldn’t be ignored because of the results we see on there. When Bing is working right, it is great and should be considered a superstar. There are times when it doesn’t work as well, and that is why it can be compared to a superstar who is often injured.

LR: I decided to compare it to one of the best players in the game, when he is healthy: Troy Tulowitski.

Before going down due to injuries in 2014, he was by far the only candidate for NL MVP, hitting .340 with 21 home runs and 52 RBIs. He only played in 91 games, and still had one of the best years of his career. When Tulo is healthy, he is one of the best in the game and is worth a high draft pick.

SH: In sports, there is nothing quite as disappointing as seeing a player with so much talent who is plagued with constant injury. There’s no doubt that Bing has gained more traction against Google, but it’s still quite not at the same level.

Albert Pujols is one of those players who when he is healthy, he’s unstoppable. With 520 home runs and over 2,500 hits, Pujols is a lock for the Hall of Fame and will be in the discussion for one of the greatest players of all time. Assuming he is healthy during the season, Pujols could really pay off especially since he will most likely remain undrafted for quite a few rounds.

Facebook

Facebook advertising is one of the best ways for small businesses to reach their target audience, especially local. It could be said that Facebook is close to the peak of what they can do with regards to advertising, which isn’t necessarily a bad thing.

LR: For my player comparison, I chose Clayton Kershaw. He is definitely at the peak of his career. It is hard to find a pitcher that has had a better four-year stretch than Kershaw. He won the Cy Young in 2011, finished second in Cy Young voting in 2012, and has only won the Cy Young in back to back years, with an MVP thrown in there in 2014. He is at the top of his game right now and is working his way into the conversation for not only the best pitcher of the 2010s, but one of the best of all time.

SH: Since becoming the platform that continues to dominate the social landscape, Facebook is no longer the new kid on the block.

For me, gotta go with a hometown favorite in Andrew McCutchen. Beloved by all in the City of Bridges, the outfielder is a continual part of the Pirates’ growing levels of success.

McCutchen has been one of the hottest players in the league over the last two years, winning the NL MVP in 2013. You might want to act fast seeing as how he’s ranked #2 overall. Let’s hope his new hairdo doesn’t create any bad ju-ju.

Twitter

Twitter is our personal favorite social network and it is slowly becoming the 2^nd most popular behind Facebook. The problem with Twitter lies in its advertising programs. While you can advertise on Twitter, we feel like the network is really lagging behind others when it comes to finding out ways to reach the right audiences. It has all the potential in the world, but can’t seem to live up to expectations.

LR: That brings me to my player comparison, which is Jason Heyward.

I am slightly biased with this pick because I am a Braves fan, but any baseball fan should agree that Heyward is not living up to his potential. Remember when he did this in his first major league at bat? Heyward was supposed to be the next Chipper Jones, the face of the Braves for almost 2 decades.

It hasn’t worked out like that because of a combination of injuries and lack of progression as a hitter. Heyward was sent to St. Louis as a part of the Braves’ offseason roster changes. The change of scenery may be good for him and as a Braves fan I hope the best for him.

SH: I am so torn on Twitter. It’s one of the best platforms out there and offers levels of engagement that the others simply can’t match. Not being able to prove its worth to marketers and in turn report consistent profits to their investors, it remains to be seen whether Twitter will be a homerun in the long term.

Russell Martin is a player with so much potential but not a single team he’s played for is willing to invest for much more than a few seasons. This year he’ll be playing for his hometown Toronto Blue Jays. In reality, Martin is just a .259 hitter with some occasional pop in his bat, but recent years and catcher classes have shown that’s solid for a starting fantasy catcher. Martin won’t win or lose your league for you, but he should come through as a great choice for your line-up.

LinkedIn

LinkedIn is a social network for professionals, where advertising for B2B companies can be great. It is the perfect network for a company looking to reach professionals and other companies.

LR: When I was trying to think of a player to compare to LinkedIn, all I could think of was the old baseball cliché, “he’s a true professional.” The first player that came to mind was Joey Votto, the perinnial All-Star 1B from the Cincinnati Reds.

Votto is not a flashy player, but he is one of the best in the league. He is solid defensively and one of the best hitters in the game. He is so good at the plate that Reds’ management actually asked him to change his hitting style so that he walks less (umm, what?)

He is a true professional who shows up and plays the game the right way. Votto is the LinkedIn of baseball. Nothing flashy or over the top, but gets the job done.

SH: Compared to the others, LinkedIn has power in users but lacks all the flashiness. Sometimes you just gotta go with a true professional who will get the job done. And at this point you’ll need to round out your outfield.

At 34-years-old, Toronto Blue Jays’ Jose Bautista has been around the block. Having played for 5 different MLB teams, he’s been a Toronto baseball staple since 2008. In just a few years, he has transformed from a role player to a professional hitter. When healthy, he is a top 5 power hitter. When you need a pro and you need it done now, this 5-time All-Star player is a safe bet.

So there you have it, the first five of our starting nine! We hope you enjoyed reading and hopefully this is helpful, not only with your fantasy teams, but with online advertising as well. Have suggestions or changes to either of our teams? Be sure to let us know about them in the comments! Stay tuned for part two!

The post If Online Ad Platforms Were Baseball Players—DOM’s Starting Lineup appeared first on Direct Online Marketing.