What are Blended ROAS?
Understanding Blended ROAS in E-commerce
Quick Definition
Blended ROAS (Return on Ad Spend) is a holistic marketing metric that calculates total revenue generated from advertising across all channels divided by total advertising spend, providing a comprehensive view of overall marketing performance and efficiency beyond individual channel-specific analysis.
Understanding Blended ROAS
Calculating Blended ROAS
Blended ROAS = Total Revenue from All Channels ÷ Total Advertising Spend
Example Calculation:
Total Ad Spend: $10,000
Total Revenue Generated: $45,000
Blended ROAS = $45,000 ÷ $10,000 = 4.5 (or 450%)
Why Blended ROAS Matters
- •Holistic Performance View: Provides comprehensive understanding of marketing effectiveness across all channels
- •Budget Optimization: Helps allocate resources more efficiently by understanding overall marketing performance
- •Cross-Channel Insights: Reveals interconnected impact of different marketing channels
Blended ROAS Benchmarks
| Performance Level | ROAS Range | Interpretation |
|---|---|---|
| Poor | Below 2 | Advertising costs exceed returns |
| Average | 2 - 4 | Breaking even or modest profitability |
| Good | 4 - 6 | Strong marketing performance |
| Excellent | 6+ | Exceptional marketing efficiency |
Advanced ROAS Optimization
Modern e-commerce businesses need sophisticated approaches to marketing performance tracking. Tools like Growth Suite can help merchants dive deeper into performance metrics, providing granular insights into visitor behavior and purchase intent that go beyond traditional ROAS calculations.
By understanding blended ROAS, businesses can make more informed decisions about marketing spend, channel prioritization, and overall growth strategies.
Put Blended ROAS into Practice
Ready to apply these concepts to your store? Growth Suite provides the tools you need to implement effective blended roas strategies.
Other Terms in "B"
- B2B (Business-to-Business)
- Barcode (EAN/UPC)
- Bayesian Statistics
- Behavioral Analytics
- Behavioral Targeting
- Black Hat SEO
- Blog Post
- BOPAC (Buy Online Pick Up At Curbside)