Return on Ad Spend, showing revenue generated from advertising.
NOIR & BLANCO COMMUNITY
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
ROAS (Return on Ad Spend) is a marketing metric that measures how much revenue is generated for every ₹1 spent on advertising. It is commonly used to evaluate the performance of Google Ads, Meta Ads, and other paid advertising campaigns.
ROAS formula
ROAS = Revenue attributed to ads ÷ Advertising spend
For example, if a Shopify store spends ₹20,000 on ads and generates ₹80,000 in attributed revenue:
ROAS = ₹80,000 ÷ ₹20,000 = 4
This means the campaign generated ₹4 in revenue for every ₹1 spent on advertising, or a 4:1 ROAS.
Why ROAS is important
Important: ROAS measures revenue, not profit. It doesn’t automatically account for product costs, shipping, returns, agency fees, or other operating expenses, so a high ROAS does not necessarily mean the campaign is profitable.