After launching this specially crafted campaign, we got the immediate ROAS over 3, which was incredible considering we were aiming for just a 1 ROAS immediately. While that 3+ ROAS was amazing in itself, the long term ROAS was 12+! This double digit ROAS is calculated by taking into account the average amount of time someone remains a subscriber and thus how much revenue a new customer will ultimately bring in over the lifetime of them being a subscriber.
Let's break down some of these amazing results a little bit further, shall we? In just a few short months of running ads for this subscription business, we've generated a 10.99 projected ROAS.
Want to know exactly how we got these figures?
$4,115.86 in ad spend
$8,887.40 immediate revenue
10.99 projected lifetime revenue: (525 purchases x LTV of $86.19 = $45,249.75. We then take $45,249.75 in projected revenue divided by $8,887.40 in ad spend = 10.99 ROAS).
In other words, with every new subscriber, that new subscriber will bring in $86.19 in revenue during the lifetime of them being a subscriber. This is an AMAZING lifetime projected revenue and a result that we are all thrilled with!