Metrics Dictionary

NC ROAS

nc_roas

Overview

New Customer Return on Ad Spend (NC ROAS) measures the revenue generated from new customers relative to the advertising spend.

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NC ROAS = New Customer Order Revenue ÷ 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:

  • New Customer Revenue = sum(if(is_new_customer, o.order_revenue, 0)) --> Orders table
  • 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

New Customer Return on Ad Spend (NC ROAS) highlights the effectiveness of your ad spend in generating revenue from new customers, providing critical insights into campaign profitability and customer acquisition efficiency.

  • Assess Campaign Profitability: A high NC ROAS indicates that your ad spend is efficiently driving revenue from new customers. Use this metric to identify successful campaigns.
  • Optimize Ad Spend: If NC ROAS is low, reassess ad creative, targeting, or budget allocation to improve the efficiency of campaigns focused on new customer acquisition.
  • Benchmark Against LTV: Compare NC ROAS with your new customer lifetime value (LTV) to ensure sustainable growth and a positive ROI from acquisition efforts.

Related Metrics

  • Blended ROAS: Provides a broader view of your ad spend profitability across all customers, helping contextualize NC ROAS.
  • New Customer Revenue: Tracks revenue specifically from new customers, the numerator of NC ROAS, offering detailed insights into acquisition-driven revenue.
  • NCPA: Complements NC ROAS by showing the cost side of new customer acquisition, enabling a full assessment of efficiency and profitability.

Example Use

Prompt

What's my NCROAS the last 90 days?

Response

Query

SELECT
  COALESCE(
    SUM(bst.new_customer_revenue) / NULLIF(SUM(bst.spend), 0),
    0
  ) AS nc_roas
FROM
  blended_stats_tvf () AS bst
WHERE
  bst.event_date BETWEEN CURRENT_DATE() - 90 AND CURRENT_DATE()  - 1;

Updated 2 days ago