Financial Metrics
Return on Ad Spend (ROAS)
A marketing metric that measures the efficacy of a digital advertising campaign.
What is ROAS?
Return on Ad Spend (ROAS) calculates the revenue earned for every dollar spent on advertising. It is the most common metric for gauging the immediate success of a paid media campaign.
Formula
Revenue from Ads / Cost of Ads
Benchmark
A common benchmark is 4:1 (or 400%), meaning you earn $4 in revenue for every $1 spent on ads. However, this varies wildly by industry and profit margins.