Return on Ad Spend (ROAS)
TL;DR: Return on Ad Spend (ROAS) is a metric used to measure the revenue generated for every dollar spent on advertising. It helps advertisers understand the effectiveness of their ad campaigns.
Return on Ad Spend (ROAS) is a type of metric that works the same as ROI or return on investment. It calculates the total revenue earned per dollar spent on paid marketing and promotions. It is simply measured by dividing the conversion value (sales) by the cost of advertisement. It is important to measure as it allows the company to see how much they make from digital advertising.
Updated February 17, 2024
Axel Grubba is the founder of Findstack, a B2B software comparison platform, with his background spanning management consulting and venture capital where he invested in software. Recently, Axel has developed a passion for coding and enjoys traveling when he is not building and improving Findstack.
Return on Ad Spend (ROAS)
earn what ROAS is and how it measures the effectiveness of advertising campaigns, helping businesses optimize ad spend.
https://findstack.com/glossary/return-on-ad-spend-roas
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2024-02-17 17:05:10 +0000
Axel Grubba
Axel Grubba is the founder of Findstack, a B2B software comparison platform, with his background spanning management consulting and venture capital where he invested in software. Recently, Axel has developed a passion for coding and enjoys traveling when he is not building and improving Findstack.
https://findstack.com/blog/authors/axel-grubba
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