What is ROAS?

ROAS or Return on ad spend is an extremely important KPI for any media-buyer or paid ads specialist. It shows how much you earn on every dollar you actually spend on ads.

For marketers it’s important to spend as less on ads as possible, while receiving big financial rewards.

ROAS formula

You can calculate return on ad spend with a following formula:

ROAS = (revenue from ads/ cost of ads) x 100

Usually, your ad tracking software should be able to calculate this metric automatically!

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