Understanding iROAS: Measuring Incremental Return on Ad Spend
· 2h ago · Originally reported by PPC Land
iROAS, or incremental return on ad spend, is a metric that calculates the additional revenue generated by advertising compared to its cost. The article discusses how various tests and modeling approaches are used to estimate iROAS, and notes ongoing debates about the accuracy of these methods.
Why it matters
iROAS helps advertisers understand whether their ads are truly driving new sales or just capturing sales that would have happened anyway. Accurate measurement is crucial for making smart ad spending decisions.
Explain it like I’m new here
It's like checking if the money you spent on lemonade stand signs actually brought in more customers, or if they would have come anyway.
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