ROAS (Return on Ad Spend)

Category: Metrics

Revenue generated for every dollar of ad spend.

ROAS = revenue attributable to ads ÷ ad spend. Different from ROI because it ignores cost of goods, salaries, and overhead. Break-even ROAS depends on gross margin: a 60% margin business breaks even at 1.67x; 30% margin needs 3.3x. Blended ROAS across all paid channels is the executive number; channel-level ROAS is the buyer's.

See also: roi, cac, break-even