What return on advertising investment is
Photo: Avila Ops Tecnologia
Advertising return compares earnings from ad-generated sales with spending to run the ad. Spend R$ 1,000 and generate R$ 4,000 sales: gross return is four to one. Subtract product, delivery, and advertising costs for real return.
This decides whether ads continue, grow, or stop. Without it, decisions become feelings. Before renewing any budget, calculate this first.
What differs between ROI and ROAS?
ROAS (return on ad spend) divides revenue by spending: R$ 4,000 sales divided by R$ 1,000 ads gives ROAS 4. It does not know product cost.
ROI deducts costs. If those R$ 4,000 sales involved R$ 2,400 merchandise and freight, R$ 1,600 remains. Deduct R$ 1,000 ads: R$ 600 profit. ROI is 60% of investment. This pays bills.
High ROAS can hide losses. Meta cannot decide whether your ad is worthwhile; only you know margins.
Where do ad sales figures come from?
Tracking. Managers count sales only when notified: website Meta pixel, store integration, or CRM records identifying ad-sourced customers. Otherwise dashboards show clicks and conversations, not sales.
For WhatsApp sales, record source at first contact and close the record when Pix arrives. It takes work but alone tells whether R$ 1,000 became R$ 4,000 or R$ 400. Technical details: avilaops.com/guias/como-configurar-pixel-da-meta-e-medir-conversoes.
What to do now
Take six months of ad spend and attributable sales. Calculate ROAS and apply margins to reach ROI. If attribution is impossible, fix tracking next. Five figures on one self-updating screen: avilaops.com/sistema-para-pequenas-empresas or WhatsApp: wa.me/5517997811471.
Frequently asked questions
What is a good small-business ROAS?
Depends on margin. Divide 100 by margin percentage for break-even ROAS: 25% requires ROAS 4 merely to avoid losing on the sale. Above that, margin must still cover fixed costs before becoming profit.
Does return include repeat buyers?
Not in the ad manager’s calculation, which sees a post-click window. Months of repeat buying increase real return. Compare customer acquisition cost: What customer acquisition cost is.
Can WhatsApp conversation ads have measurable returns?
Yes, if someone records each conversation’s outcome. Managers count initiated conversations. You record sales in CRM or spreadsheets.
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