4 mistakes e-commerce marketers make when measuring ROAS

The return on ad spend metric is an important tool for showing the efficacy of your message—but mistakes can render the number meaningless.

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Most e-commerce businesses rely heavily on advertising to draw customers to their websites and, in the case of retargeting, remind them of past visits or past purchase intentions. When it comes to measuring ad spend, there are a handful of common pitfalls that every e-commerce business must know how to navigate.

Here are four different mistakes marketing managers make when assessing the return on their advertising investments (ROAS), and the only ways to avoid them.

Often, e-commerce businesses will use different marketing agencies to manage different channels. One agency will run the email campaign, another one will cover social media, etc. There is absolutely nothing wrong with this—that is, unless the measurement is conducted through the use of the engine data of the different platforms.

Google, Facebook and the other platforms each have their own data and they are all too happy to claim success for a conversion. Let’s say your clients have seen a Google ad, a Facebook ad, maybe a retargeting display ad on a website as well. They might have engaged with several of these ads, but only made one purchase. The problem now is that in many cases, adding up the data from the different platforms will show up as multiple of purchases what was actually purchased just once.

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