An eCommerce recently installed the Facebook pixel on their website to better understand the ROAS of the online marketing efforts.
After two months, they’ve spent $3,500 in online conversion campaigns, and generated $6,000 in revenue.
You realize that the ratio for the ROAS is 1.71:1
What does this ratio mean? Choose only ONE best answer.
A . For every $1 you spend on a campaign, you generate $3.5 of revenue.
B . For every $1 you spend on a campaign, you generate $1.71 of revenue.
C . For every $10 you spend on a campaign, you generate $1.71 of revenue.
D . For every $1 of revenue, you spend $1.71 in advertising.
Answer: B
Explanation:
The return on ad spend (ROAS) for this campaign would be $1.71 or a ratio of 1.71:1 ($6,000 / $3,500).
So for every 1 dollar that the company spends on its campaign, it generated $1.71 worth of revenue.