Fivetran formulas: Increase your Return on Ad Spend (ROAS)

Marketing teams are expected to spend approximately 14% of a company's budget in 2023, up nearly four percent from the last two years. With increased spending comes more data and responsibility to leverage that data effectively. One critical metric for understanding advertising campaign performance is Return on Ad Spend (ROAS). As a data engineer, you play a crucial role in unlocking advertising data for your organization. To calculate ROAS, divide the revenue generated from an advertising campaign by its cost. A high ROAS indicates that more customers are being acquired at a lower cost, while a low ROAS suggests fewer customers are being acquired at a higher cost. This metric helps marketing teams determine which channels and campaigns to invest in for customer acquisition. Centralizing advertising data is essential for obtaining accurate and reliable ROAS metrics. Without the support of a data team, marketers may have to manually pull numbers from various sources, leading to error-prone reporting and poor business decisions. Organizations with higher data maturity ensure that crucial data is validated and automated by their data teams. Fivetran simplifies the setup and maintenance process for building pipelines with appropriate endpoints to provide necessary metrics to query. The two primary data source types applicable are Advertising and Conversion. Common advertising platforms include Google Ads, LinkedIn Ads, Facebook Ads, TikTok Ads, and Snapchat Ads. Conversion sources depend on the company's sales type, such as Salesforce for B2B contracts or Shopify for B2C purchases. To set up a Fivetran connector for understanding ROAS, follow these steps: add the connector, authorize API access, configure data and select historical timeframe, complete connection tests, start initial sync, validate and standardize data across each new source in the destination, and leverage Quickstart data models to efficiently transform raw application data into analytics-ready tables. By connecting ad sources and conversion sources, you can compare advertising spend data with conversion metrics to understand what is driving customers to convert. Fivetran enables organizations to centralize their data, save hours of effort, and double their return on ad spend while scaling worldwide.