Definition
ROAS, or the Return on Ad Spend metric, allows property managers and marketers to assess the performance of their advertising strategies by comparing the revenue generated.
Expressed as a ratio, a higher ROAS indicates a more successful campaign, signifying that the methods employed are effective in attracting and retaining tenants.
Why it Matters?
- Efficient Budget Allocation: Understanding ROAS helps in directing advertising spend towards the most effective strategies.
- Performance Measurement: ROAS provides a clear metric to gauge the success of advertising campaigns.
- Strategic Decision Making: By analyzing ROAS, multifamily property marketers can make informed decisions about future campaigns.
Example
Let's say you invested $1500 in Google Ads and made a lease with a value of $6000.
So, the ROAS will be: Final Leasing Value / Google Ad Spend = $6000/$1500 = 4:1