03/02/2023
Case Study: ROAS of 1.93 for Shopify E-commerce Brand with 19 days
𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧: Advertising spend of an e-commerce business for the time period⌛ from January 13th to January 31st, 2023.
💰 𝐀𝐦𝐨𝐮𝐧𝐭 𝐒𝐩𝐞𝐧𝐭: The business spent a total of ₹8,329.99 on advertising during the time period.
🛒 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞𝐬: The advertising efforts resulted in 23 purchases during the time period.
🫰 𝐂𝐨𝐬𝐭 𝐩𝐞𝐫 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞: The cost per purchase was ₹362.17. This indicates that for every ₹362.17 spent on advertising, the business was able to generate one purchase.
🛒 𝐀𝐝𝐝 𝐭𝐨 𝐂𝐚𝐫𝐭: The business also saw 23 add-to-cart events, which is a strong indication of customer interest in their products.
🫰 𝐂𝐨𝐬𝐭 𝐩𝐞𝐫 𝐀𝐝𝐝 𝐭𝐨 𝐂𝐚𝐫𝐭: The cost per add-to-cart was ₹362.17, the same as the cost per purchase.
✅ 𝐂𝐡𝐞𝐜𝐤𝐨𝐮𝐭 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐞𝐝 𝐂𝐡𝐞𝐜𝐤𝐨𝐮𝐭:The business also saw 74 checkout-initiated events, indicating that customers were actively engaging with the checkout process.
🫰 𝐂𝐨𝐬𝐭 𝐩𝐞𝐫 𝐂𝐡𝐞𝐜𝐤𝐨𝐮𝐭 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐞𝐝 𝐂𝐡𝐞𝐜𝐤𝐨𝐮𝐭: The cost per checkout initiated was ₹112.57, which is lower than the cost per purchase and add-to-cart.
🚀 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐀𝐝 𝐒𝐩𝐞𝐧𝐝 (𝐑𝐎𝐀𝐒): The ROAS for the advertising spend was 1.93, which indicates that for every ₹1 spent on advertising, the business generated ₹1.93 in revenue.
𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧: The results indicate that the e-commerce business was successful in generating sales and customer engagement through its advertising efforts.
The cost per purchase and add-to-cart was relatively high, but the lower cost per checkout initiated indicates that customers were actively engaged with the checkout process.
The ROAS of 1.93 indicates that the advertising spend was a good investment for the business.
Now we are planning to further optimize their advertising spending by analyzing their cost-per-action metrics and targeting their advertising efforts to reach their target audience.
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