Return on advertising spend (ROAS) measures the efficiency of an advertising campaign. It is calculated by dividing the revenue generated from the campaign by the amount spent on advertising. For example, if an advertiser spends $100 on an advertising campaign and generates $500 in revenue from that campaign, their ROAS would be 500/100 = 5. This means that for every dollar spent on advertising, the advertiser generated $5 in revenue.
ROAS is a useful metric for advertisers because it allows them to see how well their advertising campaign is performing in terms of generating revenue. It can help advertisers compare the effectiveness of different campaigns and make decisions about where to allocate their advertising budget. A high ROAS indicates that the advertising campaign is generating a good return on investment, while a low ROAS may indicate that the campaign is not performing well and may need to be adjusted or changed.« Back to Glossary Index