The CPA and ROAS shows you how profitable your campaigns work for you. Ideally the ROAS should be >= 1 (meaning the channel / campaign works profitable).
Based on the performance of the campaigns and your marketing strategy you will have different choices to act:
- Scale campaigns with high ROAS but low volume in conversions and test if the ROAS remains profitable
- Use ROAS to cut unprofitable campaigns with low volume in conversions and revenue
In every case and measure you take we are recommend to do it in a testing approach, in which you will constantly analyze the performance of the campaigns, change your budget and let it run for at least 2 weeks:
For many clients getting started is the most challenging thing to do. Generally speaking you always have two options to proceed:
- Shift your Budget within your channels
- Shift your budget within one channel and its campaigns
We'd always recommend to start with a bottom up approach, as it is less risky and less political than doing major shifts within your whole channel-mix.
Optimize your campaigns within one channel based on your holistic attribution KPIs first, then move on to shifting massive budgets between your channels.
If you want to learn more about frequently asked questions of how to shift budget and optimization, have a look to the Part IV of 'How to use Adtriba'.