Categories
Uncategorized

ROAS and Marketing Budget

I have read that businesses should typically budget around 10% of their revenue for marketing. However, I have also read that the average ROAS for an e-commerce business is just 4:1. Surely this would mean that an e-commerce business would need to be spending at least 25% of their revenue on advertising just to maintain their current sales?

Am I missing something here? How can companies remain stable and profitable with just a 10% marketing spend? Is it simply that a company's other marketing strategies, outside of advertising, are more cost-effective, such that they can bring the overall return on marketing spend towards 10:1?

submitted by /u/Climate987
[link] [comments]

Leave a Reply

Your email address will not be published. Required fields are marked *