Roas
Abbreviation for return on advertising investment. This is a quantitative measure of the revenue generated by a campaign compared to the cost of the associated ad.
Reimbursement of advertising costs. By measuring your ROI, you can determine the effectiveness and profitability of your campaigns.
The formula to calculate the ROA of your campaign is:
Revenue/Campaign Cost * 100% = ROAS
Example: A company spends $1,000 in a month on an online advertising campaign. This month, the campaign is generating $5,000 in revenue.
$5,000/$1,000 * 100% = 500% ROAS
In other words, for every dollar spent, the campaign generates $5 in revenue (meaning a 500% return on ad spend).
ROAS is short for "return on ad spend." This is a measure of the revenue generated by a campaign relative to the money spent on advertising.
It means return on advertising costs. A PPC marketing metric that measures the revenue generated compared to the amount of money spent on advertising. Similar to return on investment.
