ROAS
ROAS — Return on Ad Spend — measures how much revenue a campaign generates for every dollar spent on it. The formula is simple:
A ROAS of 3x means every $1 spent returned $3 in revenue. A ROAS of 1x means you broke even. Below 1x, the campaign cost more than it returned.
ROAS for direct mail
In direct mail, campaign spend includes the cost per postcard (print + postage) multiplied by the number of postcards sent. Revenue is measured by attributing orders back to the campaign within a set attribution window.
Because direct mail has a physical cost per piece, it operates at lower volumes than digital campaigns — but the physical channel often achieves higher conversion rates, which can make ROAS comparable or superior to email and paid social for the right use cases.
How TouchDrop calculates ROAS
TouchDrop tracks two attribution signals:
- QR code scans — Each postcard includes a unique QR code. When a customer scans it and places an order within the attribution window, the order is attributed to the campaign.
- Discount code redemptions — Each postcard includes a unique Shopify discount code. When the code is used at checkout, the order is attributed to the campaign regardless of whether the QR code was scanned.
Campaign ROAS is displayed in the TouchDrop dashboard in real time as orders come in, using a 60-day attribution window from the postcard send date.
Practical ROAS benchmarks for direct mail
Direct mail ROAS varies significantly by campaign type, product category, and offer strength. Win-back campaigns targeting lapsed high-LTV customers typically achieve the highest ROAS because the audience is pre-qualified and the acquisition cost has already been paid. Abandoned cart campaigns often achieve strong ROAS because intent is already signalled at checkout.
Related terms and reading
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