ATS Ratio- A Marketing Spend Vs Sale!!
Wednesday, November 12th, 2008One of the key element in today’s online marketing scenario and has always been is what is your ATS ratio. That means Advertising to Sales Ratio.
Let me explain this in bit detail as this useful while an online marketer tries to drive online traffic to his website.
Lets start with an example: I have spend close to 10000 in Google adwords and generated an affiliate sale of one million. This means my ATS ration will be become:
ATS=(10000/1000000)*100= 1%
This means so far my marketing spend is 1% of the total sale. This ratio differ from product to product and Business to Business.
For any Business or product, an ideal ATS ratio should be 2-3% . Later in the post, i will touch what is see page ratio.