ROAS is pivotal in digital ads, showing revenue against campaign costs. Higher ROAS means more revenue than costs, showcasing campaign effectiveness.
ROAS, or Return on Advertising Spend, is a crucial metric in digital advertising, reflecting revenue relative to ad costs. Calculated by dividing campaign revenue by total spend, ROAS gauges campaign efficiency and ROI. A higher ROAS indicates more revenue than costs, highlighting campaign effectiveness.
ROAS = (Total Revenue) / (Total Spend)
For example, if a $1,000 campaign generates $5,000 revenue:
ROAS = $5,000 / $1,000 = 5
For every $1 spent, $5 revenue is earned. At Topsort, we ensure end-to-end attribution to accurately measure ROAS, providing advertisers with comprehensive insights into the effectiveness of their campaigns across the entire customer journey.
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Learn more about the metrics and KPIs you can track with Topsort here.