Return on Ad Spend: How to Track it in the Fitness Industry


Know your Metrix

Many gym owners, fitness coaches, and others working in the fitness industry don't quite realize how important online advertising is. Not only does it help potential customers become aware of your business, but it also gets more traffic to your website, and builds the brand name.

Of course, the final goal of advertising is always increasing your profits. However, to create some good advertisements, you need to spend money. That's why your return on ad spend or ROAS matters so much. In this article, we will talk about its significance, and how important it is to track this metric.

Return on Ad Spend (ROAS)

Any talk about tracking and influencing your return on ad spend would be pointless if you don't already know a decent deal of information about it. That's why we are first going to talk about the main principles of this calculation.

As you already know, return on ad spend is used to measure the profit generated from your investment into an advertisement. To explain this simply, return on ad spend is a mathematical process which you can use to calculate the effectiveness of your marketing campaign. You do this by dividing the total revenue by your total investment used for the advertising process. More on this below…

Why Is Return on Ad Spend Important for Fitness Professionals?

Using precise statistics and analytics is one of the most vital aspects of today's marketing practices. Knowing at all times what amount of traffic went through your site, how many people saw your advertisements, and how many organic clicks were there is a powerful tool which you can use to make your revenues go up in an instant.

Now you probably see where we're going with this. After making a marketing move, you can then see how it affected the areas of your business, and quickly know should you keep investing in that advertisement process, or make a new one with improvements.

For example, if you have just put up a new Instagram ad about your personal services as a fitness coach, and you see no new influx of customers, then you might have done something wrong. Putting up another advertisement that still doesn't get you any new trainees, but the statistics say that a higher number of people have visited your page means that the ad was partly good. However, you would need to change something about the way you present yourself to turn those visits into paying customers.

How to Track and Calculate Return on Ad Spend?


As you can see from the picture above, if you know the exact amount of money that you spent on the advertising campaign that you're measuring, calculating the Return on Ad Spend should prove simple.

Let's set another example to make this easier to understand:

If you have invested $2000 in your marketing campaign, and you saw $10,000.00 in net revenue. Now, let’s use these numbers in the formula we talked about. Divide $10,000.00 of net revenue by the amount spent ($2000), and you will get the number five. That means that your return on ad spend is five times more than what you invested, which is considered great!. Thats a 5:1 ratio!

Of course there are more expenses to consider in your business operations, however as an overall objective to determine ROAS, and if your marketing is working, this scenario works. A 5:1 ratio for ROAS is great and is pushing your revenue up, which was the objective.


Final Words

In case you're thinking about starting your online advertising plan, or you already have one, it's vital that you know how important it is to understand the estimated return on ad spend you're getting.

In this article, we have explained why this is crucial for your gym or another fitness project, and have also provided you with a simple formula you can use to calculate the ROAS. Check out our case studies with the button below to learn more and see ROAS in action.