Advertising
ROAS (Return on Ad Spend)
ROAS measures the revenue generated for every dollar spent on advertising, expressed as a ratio or percentage. It is the primary efficiency metric for paid media campaigns and guides budget allocation decisions across channels and campaigns.
Examples
A campaign generating $50,000 in revenue from $10,000 in ad spend has a ROAS of 5:1, meaning every dollar spent returned five dollars in revenue.
Best Practices
Set channel-specific ROAS targets based on margin structure, measure ROAS at the campaign and ad set level, and factor in the full attribution window before optimizing.