Digital Marketing & Analytics

Intermediate

Return on Ad Spend

Revenue generated for every currency unit spent on advertising.

Formula

ROAS = \frac{\text{Revenue from Ads}}{\text{Ad Spend}}

Variables

ROASReturn on ad spend

\text{Revenue from Ads}Revenue attributed to the campaign

\text{Ad Spend}Total amount spent on ads

Example

$5 000 revenue on $1 000 spend → ROAS = 5×

Did You Know?

A ROAS of 4× is a common benchmark — meaning $4 earned for every $1 spent.

marketing roas roi advertising

Share this formula

More in Digital Marketing & Analytics

Click-Through Rate

Percentage of ad viewers who click on the ad.

Cost Per Mille (CPM)

Cost to reach 1 000 viewers with an ad.

Cost Per Click

Average price paid for each click on an ad.

Cost Per Acquisition

Average cost to acquire one paying customer or conversion.

Conversion Rate

Percentage of visitors who complete a desired action.

Bounce Rate

Percentage of visits where the user left after viewing only one page.