Insights sections offer a deep dive into the effectiveness of your marketing strategies, leveraging historical data and advanced analytics. This section is key for extracting actionable insights, enabling you to evaluate and optimize the effectiveness of different marketing channels.
Contribution
Here you can to evaluate the contribution of various marketing channels and tactics on a specific business outcome.
pRevenue: Platform-reported revenue for that channel or channel + tactic combination.
iRevenue: The incremental revenue attributed directly to each channel.
pROAS: Platform reported Return on Advertising Spend
iROAS: Incremental Return on Advertising Spend, calculated by dividing iRevenue by Spend.
iFactor: Incrementality Factor, computed as iRevenue/pRevenue. This indicates how much of the platform-reported revenue is actually incremental. Typically, this value is less than 1 but can exceed 1 as well.
Contribution (%): The percentage contribution of each channel to the total revenue.
Attribute Quality Score: This score helps determine which channels or tactics should be prioritized for experiments to better calibrate MMM models. It evaluates the quality of spend variables based on their correlation and contribution.
Share of Spend vs. KPI with Incremental ROAS
It represents which channels are getting the highest share of the budget vs. which ones are generating the how much share of conversions.
Incremental Revenue over Category Trend
The chart is used to analyze the effectiveness of different platforms and understand how they impact overall KPI against the baseline.
ROAS Analysis
ROAS is a marketing metric that measures revenue earned for every dollar you spend on advertising. The ROAS Analysis chart represents the ad spend, KPI, and ROAS/CPA of each platform in one chart.
The x-axis represents the Return on Ad Spend (ROAS) and y-axis represents the Conversion Value (attributed revenue or order) on y-axis. Additionally, the size of each bubble on the chart corresponds to the amount spent on that specific platform: larger bubbles denote greater expenditure.
Blended ROAS (vertical reference dotted line) represents the average of Lifesight ROAS across all sources used in the graph. It's crucial to interpret the positioning of various platforms relative to this line. Platforms situated to the left of the dotted line are underperforming relative to the average. This placement indicates their ROAS is lower than the average, suggesting a less efficient return on advertising spend. Conversely, platforms on the right side of the line are outperforming, with a ROAS higher than the average, denoting a more effective use of the advertising budget. This distinction is essential for guiding strategic decisions in advertising resource allocation.
What is a good return on ad spend?
Pinning down a “good” ROAS is difficult, but in general, you want to have a ROAS that is over 100%. If you have a ROAS of 100%, you break even with your ad spend and your ad return.
A Return on Ad Spend (ROAS) below 100% suggests that your advertising campaign is incurring costs exceeding its revenue, necessitating a strategic review and potential adjustments to enhance its effectiveness and profitability. Conversely, a ROAS exceeding 100% indicates a profitable campaign, reflecting successful strategy and execution, yet it remains important to continuously monitor and optimize the campaign to sustain or further improve its success.
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