ROAS (Return on Ad Spend) is the ratio between revenue and ad spend, typically expressed as a number or a percentage. A ROAS of 5 means every dollar spent on ads generates five dollars in revenue. The metric measures the top-line efficiency of ads but does not account for cost of goods and profit margin.
An online store with an average ROAS of 4 can compare campaigns and scale up the ad groups that deliver the highest revenue per dollar spent.
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