What is return on ad spend in SAP CEC-MKT-CAT - Customer Attribution?

SAP Term: return on ad spend

• Component: CEC-MKT-CAT

• Component Name: Customer Attribution

• Description: A metric that determines media effectiveness. The return on ad spend is the generated gross revenue divided by the cost of running the campaign.

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• Key Concepts: 
  Return on ad spend (ROAS) is a metric used to measure the effectiveness of an advertising campaign. It is calculated by dividing the total revenue generated from an ad campaign by the total cost of the campaign. This metric helps marketers understand how much revenue they are generating for every dollar spent on advertising. 
  
  How to use it: 
  The CEC-MKT-CAT Customer Attribution component of SAP allows marketers to track and measure ROAS for their campaigns. This component provides insights into which campaigns are most effective and which ones are not performing as well. It also allows marketers to adjust their campaigns accordingly in order to maximize their return on ad spend. 
  
  Tips & Tricks: 
  When tracking ROAS, it is important to consider the lifetime value of a customer. This means that marketers should not only look at the immediate return on ad spend, but also consider how much revenue a customer will generate over time. This will help marketers make more informed decisions about their campaigns and ensure that they are getting the most out of their ad spend. 
  
  Related Information: 
  For more information about ROAS and how to use the CEC-MKT-CAT Customer Attribution component of SAP, please visit the SAP website or contact your local SAP representative.