Return on Ad Spend (ROAS)

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 January 2, 2023

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