Z-Talk: What is ROAS?

ROAS stands for return on ad spend. Some marketers use ROI, or return on investment, but the idea is similar. It’s how much you get from what you’re spending. And while the acronym might lead you to believe that it’s just for ads, it’s surely not!

What does ROAS have to do with email?

ROAS is an important part of your email marketing metrics. Just like any other channel in your marketing strategy, email has some spend associated with it. And while “ad spend” might seem like a bit of a misnomer, the money you spend on your email marketing is lumped into this. The return on this spend is the final value you’re looking for. The bigger the number the better!

Email historically has a very high return – between 3600% and 4200%! This makes it a great opportunity to try and supercharge your efforts. Even little tweaks can have a huge impact on that bottom line.

Why not track just revenue instead?

Revenue is important to track but doesn’t give you the full picture. Your revenue can be high but that doesn’t mean your spending is low! You have to spend money to make money, it’s true, but you have to do so in a way that’s scalable. The key is to keep spending reasonable and revenue high. That’s why tracking ROAS is a better way to determine success over just revenue improvements.

How to improve ROAS for email

The power of personalization is no secret around email marketing. It’s one of the best ways to improve ROAS of your email marketing campaigns. The problem is that it can be difficult and expensive to do. Zembula has found several ways to make it more effective and scalable from a cost perspective.

Our customers, like Forever 21, have reported 11x ROAS while using our solution. That’s huge!

Want to learn more about how ROAS impacts your email marketing strategy? Watch our latest Z talk!