Attributed returns are a measure of cost efficiency while incremental returns indicate the actual effectiveness of the campaign.
Attributed Return on Ad Spends (aROAS)
What is it? Attributed ROAS is a media metric that measures the efficiency or cost effectiveness of a digital advertising campaign.
What does it indicate? This metrics indicates how efficient individual media tactics are at gaining sales and reaching the right audiences. However, this metric is not designed to indicate or drive sales growth.
Why it’s important? Brands closely monitor optimization and tactical performance to ensure positive trends that will inform efficiencies for future investment decisions dependent on the campaign objective.
Formula: Attributed Sales Return on Ad Spend = (Media Revenue/ Total Ad Spend)
Incremental Return on Ad Spend (iROAS)
What is it? Incremental ROAS is a marketing metric that measures the incremental sales lift between audiences that were exposed and not exposed to a digital advertising campaign.
What does it indicate? The impact and necessity of the total media investment in driving sales to the exposed audience vs the non-exposed audience.
Why it’s important? This tells you the true value of a media investment and helps brands understand if they contributed to total sales growth goals.
Formula: Incremental Sales Return on Ad Spend = (Test Group- Control Group) / Total Ad spend