BEROAS Calculation Tool
Calculation Results
BEROAS Ratio:
Efficiency Percentage:
Ad-Generated Profit:
What is a BEROAS Calculation?
A BEROAS (Business Efficiency Return on Advertising Spend) calculation is a critical marketing metric used to measure the effectiveness of digital advertising campaigns. Unlike traditional ROI which looks at overall profit after all expenses, BEROAS focuses specifically on the gross revenue generated for every dollar spent on advertising.
The BEROAS Formula
The mathematical logic behind the BEROAS calculation is straightforward but powerful:
BEROAS = Total Ad Revenue / Total Ad Cost
To express this as a percentage, you multiply the result by 100. For example, a BEROAS of 5.0 means that for every $1 spent, you generated $5 in revenue, or a 500% return.
Why Track BEROAS?
- Channel Comparison: Determine whether Facebook, Google, or TikTok ads are performing better.
- Budget Allocation: Move funds from low-performing campaigns to those with higher BEROAS ratios.
- Scalability Analysis: Understand if you can afford to increase spend while remaining profitable.
Example Calculation
Imagine a boutique clothing store runs a summer campaign:
- Total Sales from Ads: 12,500
- Total Ad Spend ($): 2,500
- Calculation: 12,500 / 2,500 = 5.0
- Result: The BEROAS is 5:1 (or 500%).