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What does Return On Ad Spend (ROAS) mean?

Asked 3 years ago

I have seen the abbreviation ROAS come up numerous times, and I know that it stands for Return on Ad Spend. But what does it actually mean in relation to a business?

Dangelo Hickman

Tuesday, October 12, 2021

Return on Ad Spend is a measuring tool used in marketing. ROAS calculates the total revenue generated from each dollar that you spend on advertising your business. With the help of ROAS, you can easily measure how effective your business and advertising efforts are going. In short, a higher ROAS value means better ad performance, and a lower ROAS value means poor ad performance.

Albert Bowen

Thursday, March 10, 2022

Return On Ad Spend (ROAS) is an important marketing metric especially if your business has invested in ads. ROAS measures the revenue generated on every dollar you spend in an ad.

A good ROAS ratio is 2:1, meaning you generate $2 revenue for every $1 spent in advertising. A high ROAS shows great ad performance while a low ROAS shows poor ad performance by using the ROAS formula to calculate it.

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