Google Ads Efficiency Calculator

What do these efficiency metrics mean?

ROAS (Return on Ad Spend) Percentage is a metric that measures the amount of revenue generated for every dollar spent on advertising, expressed as a percentage. For example, a ROAS of 400% means that for every $1 you spend on Google Ads, you generate $4 in revenue. ROAS is a crucial indicator of advertising profitability, helping you determine if your campaigns are generating a positive return on investment and what your budget should be.

COS (Cost of Sale) is the percentage of your revenue that goes towards advertising expenses. For instance, a COS of 25% means that for every $100 in revenue, $25 was spent on advertising. COS helps you understand the efficiency of your advertising in driving sales. A lower COS indicates that you're spending a smaller portion of your revenue on advertising to acquire each sale, improving your profit margins.

ROAS and COS are inversely related. A higher ROAS means you are generating more revenue per dollar spent on advertising, which translates to a lower COS (a smaller percentage of revenue spent on ads). Conversely, a lower ROAS indicates a higher COS. Use these numbers as you find your Sweet Spot in Google Ads.