# New Industry-first Return On Ad Spend (ROAS) calculator reveals profitability  
Published: 2024-02-20
Category: Headlines
Category URL: https://business.express/category/headlines/
Meta Title: New ROAS Calculator: Boost Profitability Instantly
Meta Description: Discover profitability levels for your advertising campaigns with ProfitSpring's ROAS calculator. Ensure your ads are turning a profit today!
URL: https://business.express/new-industry-first-return-on-ad-spend-roas-calculator-reveals-profitability/

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By Byron Marr, ProfitSpring.

**ProfitSpring, PPC and paid social marketing agency have created an ad profitability calculator to help SMEs** **understand if their advertising is returning well to close the gap and break even or profit** **. You can use the calculator here.**

After years in the industry, Byron Marr, Founder at ProfitSpring – PPC and paid social marketing agency –  found that there’s a disconnect between marketing optimising and measuring based on return on ad spend (ROAS) and directors and shareholders wanting to optimise for profit.

A one-size-fits-all approach from benchmarks doesn’t work as businesses can have very different margins, growth targets and are in different lifecycle stages. For example, a 4:1 ROAS might be viable for one business but not for another.

Ensuring targets are commercially underpinned means even a smaller brand can advertise, acquire customers and grow without making a loss.

**Byron Marr comments on why he felt this new tool was vital for the PPC and paid social marketing industry:**

_“On a more tactical level, you have to input these targets now in Google & Meta. Entering too low of a target ROAS can mean blowing the budget very quickly and not seeing a return, too high of a target can mean you don’t get any click or sales volume. We need to get the input correct for machine learning bidding strategies to have a chance at getting the output right._

_“I wanted to remove the complexity and time it takes to work out these sorts of figures, and having the tool means that anyone can access the output in just a matter of seconds.”_

With advertising costs being one of the largest monthly expenses for most brands, Google Ads is very often the channel carrying sales and revenue.

_“Our tool gives SME owners a quick and easy way to see if their advertising is returning well enough and if not, where they need to get to close the gap to break even or profit._

_“We hope we’re able to support businesses in making more informed decisions with their investments by simplifying some of the complexity around this topic.”_


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