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You are not understanding the point. You cannot actually measure incremental ROAS with basic statistics and easy Google/FB tools, because you would need to know

You are not understanding the point. You cannot actually measure incremental ROAS with basic statistics and easy Google/FB tools, because you would need to know how much they would have spent WITHOUT being exposed to the ads.

disgruntledphd2 5y ago
You can run lift tests on Facebook which measure exactly that. You can't measure it across multiple advertising platforms very effectively though.
- auggierose 5y ago
  I don't know what lift tests are. It should be easy enough to devise a tool for measuring incremental ROAS under the following assumptions: a) all purchases happen online; b) I have a complete history of ad impressions and ad clicks for each user who made a purchase As you said yourself, b) breaks down for multiple platforms. It also breaks down if users have disabled tracking.
  - jefftk 5y ago
    > It also breaks down if users have disabled tracking. Almost all users who disable tracking also block ads, so you are still correctly measuring the effect of your ad spend.
  - disgruntledphd2 5y ago
    Lift tests are these things: https://www.facebook.com/business/m/one-sheeters/conversion-lift https://www.facebook.com/business/m/one-sheeters/conversion-... They are essentially what one needs to measure incremental ROAS of one's advertising. Now, there are obvious caveats (online, tracking etc) but they're much much better than what's available for other platforms.
namanyayg 5y ago
Well, if we are talking about a recently formed company who (1) doesn't do any offline advertisment and (2) only does fully tracked online ads, you can calculate ROAS fully right? (The only exception would be word of mouth sales)
- auggierose 5y ago
  It's a big exception; otherwise you are just assuming that the only way people can get to your product is through ads. But this is equivalent to assuming "incremental ROAS = ROAS". So you propose to solve the problem by ignoring it. ;-) PS: Of course that works if the difference is indeed small enough in your case so that it CAN be ignored.

disgruntledphd2 5y ago

You can run lift tests on Facebook which measure exactly that. You can't measure it across multiple advertising platforms very effectively though.

auggierose 5y ago
I don't know what lift tests are. It should be easy enough to devise a tool for measuring incremental ROAS under the following assumptions: a) all purchases happen online; b) I have a complete history of ad impressions and ad clicks for each user who made a purchase As you said yourself, b) breaks down for multiple platforms. It also breaks down if users have disabled tracking.
- jefftk 5y ago
  > It also breaks down if users have disabled tracking. Almost all users who disable tracking also block ads, so you are still correctly measuring the effect of your ad spend.
- disgruntledphd2 5y ago
  Lift tests are these things: https://www.facebook.com/business/m/one-sheeters/conversion-lift https://www.facebook.com/business/m/one-sheeters/conversion-... They are essentially what one needs to measure incremental ROAS of one's advertising. Now, there are obvious caveats (online, tracking etc) but they're much much better than what's available for other platforms.

namanyayg 5y ago

Well, if we are talking about a recently formed company who (1) doesn't do any offline advertisment and (2) only does fully tracked online ads, you can calculate ROAS fully right? (The only exception would be word of mouth sales)

auggierose 5y ago
It's a big exception; otherwise you are just assuming that the only way people can get to your product is through ads. But this is equivalent to assuming "incremental ROAS = ROAS". So you propose to solve the problem by ignoring it. ;-) PS: Of course that works if the difference is indeed small enough in your case so that it CAN be ignored.