Glossary
Return on Ad Spend (ROAS)
ROAS: the revenue you earn for every dollar spent on advertising, a key profitability measure.
Return on ad spend, or ROAS, measures how much revenue you earn for every dollar you put into advertising. If you spend 1,000 dollars and generate 5,000 dollars in sales, your ROAS is five to one. It is the clearest way to tell whether a campaign is actually making money rather than just producing activity. Setting a target ROAS keeps spending disciplined and tied to real business outcomes.
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