All Collections
What is ROAS?
What is ROAS?
Return on ad spend
Written by Topsort Marketing
Updated over a week ago

ROAS stands for Return on Advertising Spend. It is a metric used in digital advertising that measures the revenue generated from advertising campaigns relative to the amount spent on those campaigns.

ROAS is calculated by dividing the revenue generated from an advertising campaign by the cost of the advertising campaign. For example, if an advertising campaign costs $1,000 and generates $5,000 in revenue, the ROAS would be:

ROAS = $5,000 / $1,000 = 5

This means that for every $1 spent on the advertising campaign, $5 was generated in revenue.

A higher ROAS indicates that the advertising campaign is generating more revenue than it costs, while a lower ROAS may indicate that the campaign is not generating enough revenue to justify the cost. Advertisers can use ROAS to make data-driven decisions about how to allocate their advertising budget and optimize their campaigns for maximum ROI.

Did this answer your question?