Marketing Glossary
ROAS — what is it?
Return on ad spend; revenue generated by ads divided by ad cost.
ROAS (return on ad spend) is calculated by dividing the revenue from an ad campaign by the campaign spend. A 5x ROAS means 5 units of revenue for every unit spent.
ROAS considers ad cost only; for profitability it should be read together with ROI, which includes product cost and operating expenses.
Related expertise: Digital Marketing
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