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Return on Ad Spend (ROAS) measures how much revenue your business earns for every dollar spent on advertising. It's the ultimate metric for campaign performance.

📊 Ad Yield Solver

Evaluating advertising return on investment...

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Understanding ROAS

ROAS is a simple ratio that compares the value generated by an ad campaign to the cost of that campaign. Unlike ROI (Return on Investment), which looks at overall profit, ROAS specifically looks at gross revenue.

The ROAS Formula:

ROAS = Total Revenue from Ads / Total Ad Spend

What is a "Good" ROAS?

While it varies by industry, a common benchmark is 4:1 (a 400% return). However, if your profit margins are very high, a lower ROAS might still be profitable. If your margins are thin, you might need a much higher ROAS to stay in the green.

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