return on ad spend (ROAS)

Return on ad spend (ROAS) is a metric used to assess the performance of marketing efforts. It is equal to the amount of revenue generated for each dollar expended on a campaign. Similar to return on investment (ROI), it demonstrates how much profit was produced by ad spending. ROAS can be calculated at multiple levels: individual ads, campaigns, or an entire marketing strategy. It is a crucial key performance indicator (KPI) when looking at the success of advertising.