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What Is ROAS?

ROAS stands for return on ad spend. It tells you how much revenue you get back for every dollar spent on ads, which makes it one of the most common scale-vs-stop metrics in performance marketing.

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Useful for ecommerce, direct-response, and revenue-tracked campaigns.Easy to compare with break-even and margin thresholds.Best read alongside profit and payback, not in isolation.

Formel

ROAS = Revenue / Ad Spend

A $10,000 campaign that drives $30,000 in tracked revenue has a 3.0x ROAS. That can still be unprofitable if the margin structure is too thin.

Metrik-Definitionen

How to read it

ROAS	What it usually means	What to do next
Below break-even	The campaign is losing money on tracked revenue	Improve offer, creative, or targeting
At break-even	Revenue covers the media spend	Optimize efficiency and tracking
Above break-even	Revenue exceeds spend	Scale carefully and watch saturation

Leitfaden

What ROAS does not guarantee

It does not guarantee profit if margin is weak.
It does not prove incrementality if attribution is biased.
It does not tell you how fast the cash comes back.

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Wichtige Seiten

Verwandte Seiten

01 ROAS Calculator Continue exploring this topic. Open 02 LTV:CAC Calculator Continue exploring this topic. Open 03 Ad Budget Formula Continue exploring this topic. Open

FAQ

Häufige Fragen

What is a good ROAS?

A good ROAS depends on margin and business model. Break-even is the first threshold to know.

Is ROAS the same as ROI?

No. ROAS measures revenue efficiency, while ROI measures profit relative to cost.

Why check ROAS with margin?

Because a high revenue multiplier can still leave little or no profit.