Knowledge base glossary
What is ROAS? A short definition.
1 minute reading time
ROAS, or return on ad spend, is a metric that measures the effectiveness of an advertising campaign.
It is calculated by dividing the revenue generated from an advertising campaign by the amount of money spent on the campaign.
For example, if a company spends $100 on an advertising campaign and generates $500 in revenue as a result, their ROAS would be 500/100, or 5.
ROAS is a useful metric for advertisers because it allows them to see how much revenue they are generating for every dollar they spend on advertising.
A high ROAS indicates that the advertising campaign is effective and efficient, while a low ROAS may indicate that the campaign is not performing well and may need to be adjusted.
