👉 Advertisers' math revolves around understanding the return on investment (ROI) and maximizing their marketing budget's efficiency. They calculate the cost per acquisition (CPA), which is the total ad spend divided by the number of new customers acquired, to determine the cost-effectiveness of their campaigns. Advertisers also use metrics like return on ad spend (ROAS), which measures revenue generated per dollar spent on ads, to gauge profitability. They aim to optimize their budgets by identifying high-performing channels and ad creatives, while minimizing waste through strategies like A/B testing and audience segmentation. By balancing cost and conversion rates, advertisers strive to achieve the highest possible ROI and ensure their marketing efforts deliver a positive financial impact.
