Zemanta Pixel tracks online user actions on your websites and if it attributes these events to an ad view or click, it records this event as an attributed conversion. For any type of event or conversion, we can calculate CPC (ad spend/number of conversions). Additionally, for purchase events, we can also calculate return on ad spend (ROAS). Return on ad spend (ROAS) is one of the most important metrics for online advertisers. To calculate it, Zemanta needs to receive information on the value of the purchase together with the information on the event that happened.

In other words, ROAS enables you to track exactly how much revenue your ad campaigns generate for your business per dollar spent on advertising. This helps you to better inform your campaign strategy and make data-driven decisions about how to best use your advertising budgets.

Every time an online user makes a purchase and Zemanta records this as a conversion, you need to consider the value of that purchase and pass it to Zemanta servers through the URL with the value parameter included. This value can be fixed or dynamic.

Here’s an example of a URL with the value parameter:

Make sure to connect the parameter to what exactly you are tracking. For example, when a user buys a product, the dynamic_value should be replaced by the sales value of that purchase. In other words, you need to populate the value each time a purchase is made.

First, you need to have your Zemanta Pixel implemented in the header sections across your website.

Second, you need to add either a rule-based conversion definition and configure a fixed value for each conversion or, alternatively, an event-based conversion definition that triggers with a code tag that looks something like the code below. To learn more about conversion definitions, click here.

In the code above, 8.9 is the example value and USD is the example currency.

This code needs to be implemented in a specific web page section that is considered as a purchase completion (page, button, etc.).

You need to define the value parameter each time the event code tag is triggered for each purchase action. You also need to define the currency parameter in order for Zemanta to correctly calculate the ROAS.

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The equation to calculate ROAS is as follows:

Ad Revenue generated* / Total Spend = ROAS

*Ad Revenue generated: sum of the value parameter for all conversions that apply in the given breakdown

The ROAS metric in Zemanta is available through the column bar on every dimension and breakdown of the dashboard. To access the metric, click on Columns and scroll to the Conversions & CPAs section. Make sure to select the relevant pixel and click on ROAS. Don’t forget to choose the lookback window relevant to your campaign.

The ROAS value will appear in the reporting table.

Generally, whenever your ROAS is above 1, your campaign is considered profitable.

To demonstrate, let’s look at a simple example:

An e-commerce brand invests $10,000 into a Zemanta campaign in a specific month. Throughout the month, their ads generate $30,000 in revenue. Using the formula above, the ROAS of their ad campaign is calculated to be 3.

This means the campaign generated $3 for every $1 spent, generating a profit of 2$.

If your ROAS is higher than 1, you can use that information as a sign that a specific ad, publisher, or media source is worth spending your ad budget on. On the other hand, if your ROAS is less than 1, this means a certain ad or a source of traffic isn’t generating a profit and you might either want to adjust your ad messaging or block that traffic source.

PLEASE NOTE: