Return on Ad Spend (ROAS) is a marketing metric that measures how much revenue is generated from a specific ad campaign. Put simply, it looks at how much money it has resulted in compared to every pound or dollar spent on that campaign. The formula is ROAS = Ad revenue/ad spend x 100%.
While 100% is the break even point with ROAS, a lower percentage means you’re losing money and a higher percentage than 100 means you’re making money on your ad.
Unlike Return on Investment (ROI), ROAS doesn’t take into account business costs during an advertising campaign. Return on Ad Spend is a revenue metric, while ROI is a profit metric.
