Revenue divided by ad spend. A ROAS of 4.0 means four dollars of revenue for every dollar spent. The metric is useful as an efficiency signal within a channel. It breaks down as a profitability measure because it ignores cost of goods, margin, and everything else between revenue and profit. A campaign with strong ROAS can still lose money. Always know what ROAS threshold you actually need to hit margin targets, not just the number that looks good in the report.
Ad tech glossary
ROAS (Return on Ad Spend)
Technical definition
A marketing metric that measures the revenue generated for every dollar spent on advertising.
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