What is ROAS ?

Revenue attributed to ads divided by advertising spend. It is a revenue measure and does not account for every business cost.

The meaning

ROAS in plain language

ROAS compares attributed revenue with ad spend. State the attribution window and revenue source, and consider margins, refunds and other costs separately. A high ROAS does not necessarily mean a campaign is profitable.

A practical example

How it works in practice

If ads are credited with $5,000 in revenue from $1,000 of ad spend, reported ROAS is 5×.

Put it into perspective

What to ask your marketing team

How does ROAS relate to our goals? Which source will we use to measure progress, and what action should we take from the information?

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