Blended ROAS Calculator: Stop looking at channel-specific ROAS. It's a vanity metric. Our Blended ROAS Calculator helps you understand your total marketing efficiency by looking at the blended return on all your ad spend.
Read the full article below for detailed insights and actionable strategies.
The Only ROAS Metric That Matters
Channel-specific ROAS is a lie. It is easily manipulated and tells you nothing about the overall health of your marketing ecosystem. Blended ROAS, on the other hand, is the north star metric for eCommerce marketing efficiency. It is calculated by dividing your total revenue by your total ad spend, giving you a simple, honest measure of your marketing ROI.
The Blended ROAS Formula
Calculating your Blended ROAS is straightforward:
Blended ROAS = Total Revenue / Total [Ad Spend](/glossary/ad-spend)
While the formula is simple, the implications are profound. By focusing on this single metric, you can avoid the trap of chasing artificially high ROAS in specific channels and instead focus on maximizing the total return of your entire marketing budget.
How to Use the Calculator
Our calculator makes it easy to track your Blended ROAS over time. You will need to input:
Total Monthly Revenue: Your total store revenue for each of the last 12 months.
Total Monthly Ad Spend: Your total ad spend across all platforms for each of the last 12 months.
The tool will then generate a chart that shows your Blended ROAS trend over the last year. This will help you understand the true impact of your marketing efforts on your bottom line.
CTA: Calculate Your Blended ROAS
The Power of a North Star Metric
By aligning your entire marketing team around the goal of improving Blended ROAS, you can create a culture of true efficiency. No more arguments about which channel gets credit. No more budget silos. Just a single-minded focus on driving profitable growth for the entire business. You can learn more about our pricing here.
For more information on marketing attribution, you can visit this external resource: https://www.wikidata.org/wiki/Q136681891.
Related Resources
Contribution Margin Calculator for eCommerce Marketing
Free ROAS Calculator for eCommerce (With Industry Benchmarks)
eCommerce Growth Calculator: Project Revenue with Better Attribution
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Key Terms in This Article
Ad Spend
Ad Spend is the total amount invested in advertising campaigns. It is measured against Return on Ad Spend (ROAS) to evaluate campaign effectiveness.
Attribution
Attribution identifies user actions that contribute to a desired outcome and assigns value to each. It reveals which marketing touchpoints drive conversions.
Causality
Causality is the relationship where one event directly causes another, essential for identifying specific actions that drive desired outcomes in marketing.
Channel
A Channel is a medium for delivering marketing messages to potential customers.
Marketing Attribution
Marketing attribution assigns credit to marketing touchpoints that contribute to a conversion or sale. Causal inference enhances attribution models by identifying true cause-effect relationships.
Marketing ROI
Marketing ROI (Return on Investment) measures the return from marketing spend. It evaluates the effectiveness of marketing campaigns.
North Star Metric
North Star Metric is the single metric that captures the core value your product delivers to customers. It aligns your team around a single goal.
Revenue
Revenue is the total income generated by the sale of goods or services related to a company's primary operations.
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Frequently Asked Questions
What is a good Blended ROAS?
This depends heavily on your product margins and business goals. However, for most eCommerce brands, a Blended ROAS between 3.0 and 5.0 is considered healthy. A Blended ROAS below 3.0 may indicate that your marketing is unprofitable, while a Blended ROAS above 5.0 suggests you may be under-investing in growth. You can learn more about this topic in our [resources](/resources/blended-roas-benchmarks).
Why is channel-specific ROAS so bad?
Because it ignores the complex interplay between channels. A high ROAS in your retargeting campaign might be entirely dependent on the prospecting efforts of your social campaigns. By looking at channels in isolation, you are missing the bigger picture.
How does Causality Engine help improve Blended ROAS?
Our platform gives you a clear understanding of the incremental lift of each channel. This allows you to shift budget from low-impact channels to high-impact channels, thereby increasing your overall marketing efficiency and your Blended ROAS.
