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Definition

What is Return on Ad Spend (ROAS)?

Return on Ad Spend (ROAS) is a financial metric that measures the profitability of a digital advertising campaign.

It is calculated by dividing the revenue generated by the campaign by the cost of the campaign. For example, if a business spends $1,000 on a PPC campaign and it generates $2,000 in revenue, the ROAS would be 2.0.

ROAS is an important metric for businesses, as it helps them to understand the return on investment (ROI) of their digital advertising campaigns and to optimize their ad spend.

By increasing the ROAS of their campaigns, businesses can improve their profitability and maximize the return on their advertising investment.

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