Revenue Optimisation
COA/ROAS Analysis
Cost of Acquisition (COA) and Return on Ad Spend (ROAS) analysis are essential components of any digital marketing strategy aimed at maximising the effectiveness of advertising campaigns and optimising marketing spend.
COA measures the cost incurred to acquire a new customer or lead, while ROAS evaluates the revenue generated from advertising relative to the cost of the advertising campaign. By analysing COA and ROAS metrics, organisations can assess the efficiency and profitability of their advertising efforts, identify areas for improvement, and optimise their marketing strategies to achieve better ROI. We help businesses evaluate the performance of their advertising campaigns, identify opportunities for optimisation, and maximise the return on their marketing investments.
Data Collection and Analysis
We collect data on advertising costs, conversion rates, and revenue generated from advertising campaigns across different channels and platforms. This includes analysing data from platforms such as Google Ads, Facebook Ads, LinkedIn Ads, and other digital advertising platforms.
COA Calculation
We calculate the cost of acquisition by dividing the total advertising spend by the number of conversions or leads generated from the advertising campaigns. This helps determine the average cost incurred to acquire a new customer or lead through each advertising channel or campaign.
ROAS Calculation
We calculate the return on ad spend by dividing the revenue generated from advertising by the total advertising spend. This provides insights into the effectiveness of advertising campaigns in generating revenue relative to the cost of the campaigns.
Channel and Campaign Performance Analysis
We analyse the performance of advertising channels and campaigns based on COA and ROAS metrics. This includes identifying high-performing channels and campaigns that deliver a positive return on investment (ROI) and low-performing ones that may require optimisation or reallocation of budget.
Audience Segmentation and Targeting
We segment audiences based on their demographics, interests, behaviors, and purchase intent to optimise targeting and improve campaign effectiveness. This may involve creating custom audiences, lookalike audiences, and retargeting campaigns to reach high-value prospects and improve conversion rates.
Ad Creative and Messaging Optimisation
We optimise ad creative and messaging to make them more compelling, relevant, and actionable. This may include testing different ad formats, headlines, images, and calls-to-action to identify the most effective combinations for driving engagement and conversions.
Budget Allocation and Optimisation
We allocate advertising budgets based on the performance of different channels and campaigns, prioritising those with the highest ROAS and potential for revenue growth. This involves optimising budget allocation to maximise ROI and achieve business objectives within budget constraints.
Conversion Tracking and Attribution
We implement robust conversion tracking and attribution models to accurately measure the impact of advertising campaigns on key performance metrics, such as conversions, sales, and revenue. This allows us to attribute revenue back to specific advertising channels and campaigns and optimise accordingly.
Competitor Analysis
We conduct competitive analysis to benchmark COA and ROAS metrics against industry peers and competitors. This helps identify areas of competitive advantage and opportunities for improvement in advertising strategy and execution.
Performance Monitoring and Reporting
We monitor the performance of advertising campaigns in real-time and provide regular reports and insights to stakeholders. This includes tracking key metrics, identifying trends and patterns, and making data-driven recommendations for optimising COA and ROAS metrics.
We help to optimise digital marketing spend by assessing advertising costs and returns. We calculate the Cost of Acquisition (COA) to measure the expense per new customer or lead and the Return on Ad Spend (ROAS) to evaluate revenue relative to advertising costs. Through data collection and analysis, we determine channel and campaign performance, segment audiences for targeted marketing, optimise ad creative and messaging, allocate budgets efficiently, track conversions, conduct competitor analysis, and provide regular performance reporting.
The benefits of doing:
Improved Marketing Efficiency: By analysing COA and ROAS metrics, businesses can identify the most cost-effective advertising channels and campaigns, leading to better allocation of marketing budgets and improved overall efficiency.
Optimised Budget Allocation: COA/ROAS analysis helps businesses allocate their advertising budgets more effectively, prioritising channels and campaigns that deliver the highest return on investment (ROI) and maximising revenue potential.
Enhanced Campaign Performance: By identifying areas for improvement and optimisation, COA/ROAS analysis allows businesses to refine their advertising strategies, leading to increased conversion rates, sales, and revenue from advertising campaigns.
Data-Driven Decision Making: COA/ROAS analysis provides businesses with valuable insights into the performance of their advertising efforts, enabling data-driven decision making and informed adjustments to marketing strategies and tactics.
Improved ROI: Ultimately, the primary benefit of COA/ROAS analysis is improved return on investment (ROI) from advertising spend, as businesses can focus on investing in channels and campaigns that deliver the highest revenue relative to advertising costs.
The consequences of not:
Wasted Advertising Budget: Without analysing COA and ROAS metrics, businesses risk wasting advertising budget on campaigns that fail to deliver a positive return on investment, leading to inefficient use of resources and decreased profitability.
Suboptimal Marketing Strategies: Neglecting COA/ROAS analysis may result in suboptimal marketing strategies, as businesses may continue to invest in underperforming channels or campaigns without making necessary adjustments to improve performance.
Missed Revenue Opportunities: Failure to optimise COA and ROAS metrics means missing out on potential revenue opportunities, as businesses may not effectively identify and capitalise on high-performing advertising channels and campaigns.
Lack of Insights: Without COA/ROAS analysis, businesses lack valuable insights into the effectiveness of their advertising efforts, making it difficult to understand customer behavior, measure campaign performance, and make informed decisions.
Competitive Disadvantage: In today's competitive landscape, businesses that neglect COA/ROAS analysis risk falling behind competitors who leverage data-driven insights to optimise their advertising strategies and achieve better results from their marketing efforts.
