Marketing glossary
What is ROAS (Return on Ad Spend)?
ROAS (Return on Ad Spend): Revenue generated for every dollar spent on ads. A ROAS of 4 means $4 in revenue for every $1 of ad spend.
ROAS = revenue from ads ÷ ad spend. Break-even ROAS depends on your margins. Platform-reported ROAS can over- or under-count, so many businesses also track blended metrics such as total revenue divided by total marketing spend.
Related terms
- AttributionHow credit for a conversion is assigned to the marketing touchpoints that led to it.
- CPA (Cost Per Acquisition)The average cost to get one conversion, such as a lead, booking, or sale. Calculated as ad spend divided by conversions.
- LTV (Customer Lifetime Value)The total revenue (or profit) a business can expect from one customer over the entire relationship.