Predict return on ad spend before your budget disappears

Return on ad spend (ROAS) prediction is an estimate of how much revenue your campaign will bring in from your ad spend, even before all the final results are in. Tools that predict ROAS based on creative performance mix can use early campaign signals, along with your past customer and revenue data, to spot ads on track to win. 

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A ROAS prediction platform combines early campaign signals, such as impressions, clicks, and initial conversions, and mixes them with your past customer and revenue data. The predictive ROAS model quickly spots the patterns that lead to big wins, giving you a clear ROAS forecast just a few days after launch.

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Many marketers use 4:1 ROAS — $4 return on $1 spent — as a common benchmark of a good return on ad spend, but industry and channel targets vary. A good return on ad spend depends on four factors:

1. Your margin
2. The repeat purchase rate
3. Your growth strategy
4. The channel you’re advertising in 

The Google Ads platform recommends setting your target ROAS based on your campaign’s historical conversion value divided by cost, often using the last four weeks as a starting point. So you might want to follow this rule: set your target ROAS around profitability, not around a generic benchmark.

The best ROAS prediction tools help you quickly move from raw campaign data to usable predictions, push forecasts into daily workflows, and avoid long custom data science projects.

When choosing your ROAS solution, focus on four things:

1. Speed to value
2. Forecast accuracy
3. Workflow integration
4. Ease of use for business teams

Pecan built a predictive analytics solution around those exact requirements. Book a live demo and see how we can help you forecast ROAS within days.