Analytics
Return on Ad Spend
Return on ad spend (ROAS) is a metric that measures the revenue generated for every dollar spent on advertising. It is calculated by dividing total ad revenue by total ad spend and is key for evaluating campaign profitability.
Examples
A campaign that generates $50,000 in revenue from $10,000 in ad spend achieves a ROAS of 5:1 or 500%.
Best Practices
Set ROAS targets by channel and campaign type, and continuously optimize bids, targeting, and creative to improve returns.