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