What is return on ad spend (ROAS)?
Return on ad spend is the revenue you earn from ads divided by what you spent on those ads.
ROAS stands for return on ad spend. Divide the revenue that came from your ads by the ad cost. If you spend 1,000 dollars and the ads bring 4,000 dollars in sales, your ROAS is 4, often written as 400 percent or 4:1. ROAS only counts ad cost, so it is not the same as profit. It works best when your sales are tracked accurately.
Why it matters for your business: ROAS helps you decide which campaigns deserve more budget and which ones to pause.
Related articles
More in Glossary
Still need help?
Ask our team