Blended ROAS

roas

Overview

Blended Return on Ad Spend (Blended ROAS) measures the total revenue generated from all orders relative to the total advertising spend across all marketing channels, including both channel ad spend and custom ad spend.

๐Ÿ“˜

Blended ROAS = Order Revenue รท Blended Ad Spend

The calculation is based on data in the Blended Stats table.


Detailed Breakdown

The formula above is derived from the following components:

  • Order Revenue = SUM(order_revenue) --> Orders table

    • order_revenue is the revenue after adjustments such as discounts, shipping, fees, and taxes.
  • Blended Ad Spend = spend + custom_ad_spend, where

    • spend = SUM(spend) --> Ads table
    • custom_ad_spend = SUM(IF(is_ad_spend, amount, 0)) --> Custom Spend table

Insights and Actions

Blended ROAS offers a holistic view of how effectively your advertising spend generates revenue across all marketing channels.

  • Monitor Revenue Efficiency: Regularly track your blended ROAS to assess how well your advertising investments are translating into revenue.
  • Optimize Channel Performance: Compare blended ROAS with channel-specific ROAS to identify which platforms are underperforming and need budget adjustments.
  • Support Budget Allocation Decisions: Use blended ROAS as a benchmark to allocate advertising budgets towards channels or strategies delivering the highest returns.

Related Metrics

  • Order Revenue: Provides the total income generated, helping you understand the revenue side of the ROAS equation.
  • Blended Ad Spend: Tracks total ad expenses, including custom spend, giving clarity to your total investment.
  • Net Profit: Complements blended ROAS by showing the overall profitability of your advertising efforts.

Example Use

Prompt

What was my blended ROAS the last 30 days?

Response

Query

SELECT
  COALESCE(
    SUM(bst.order_revenue) / NULLIF(SUM(bst.spend), 0),
    0
  ) AS blended_roas
FROM
  blended_stats_tvf () AS bst
WHERE
  bst.event_date BETWEEN CURRENT_DATE() - INTERVAL 30 DAY AND CURRENT_DATE()  - 1;