Media & Data
Basic

Return on Ad Spend (ROAS)

Revenue generated for every unit of currency spent on advertising.

Formula

ROAS=Revenue from adsAd spendROAS = \frac{\text{Revenue from ads}}{\text{Ad spend}}

Variables

Revenue from adsSales attributed to advertising
Ad spendAmount spent on ads

Example

$5,000 revenue from $1,000 spend → ROAS = 5:1

Did You Know?

A ROAS of about 4:1 is a common break-even benchmark for e-commerce.

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Percentage of ad views that result in a click.