What is ROAS?
ROAS stands for Return On Ad Spend. It's a marketing metric that measures the amount of revenue your business earns for each dollar it spends on advertising.
How to Calculate ROAS
The formula is: ROAS = Revenue from Ads / Cost of Ads. The result is a ratio. For example, a ROAS of 4 means you're
making $4 for every $1 you spend on ads.
ROAS vs. ROI
While similar, ROAS focuses specifically on the return from ad spend, whereas ROI (Return on Investment) is a broader metric that can include all costs (labor, software, etc.). ROAS is a quick way to gauge ad campaign performance.