What is ROAS? Calculating "return on ad spend" in Excel and Google Sheets
Download template: https://youexec.com/spreadsheet-templ...
How does Spotify calculate its return on ad spend? In this video, we’re going to explain 1) The formula Spotify and similar companies use to calculate their return on ads, 2) How you can do the same with a template we created, and 3) How to use the template to get started.
In January 2022, Spotify controlled 31% the subscription music streaming market, with double the share of Apple Music. This dominance comes with large customer acquisition costs.
As a growth stock, Spotify is assessed by new subscriber growth. But for a subscription company with a freemium business model, each new subscriber takes an upfront cost to acquire, while the revenue brought in comes over a longer time horizon.
Watch this video to learn more!