◆ marketing
ROAS (Return On Ad Spend)
Revenue generated per dollar spent on ads
What is ROAS (Return On Ad Spend)?
Total revenue divided by total ad spend. A ROAS of 3x means you made $3 for every $1 spent. Anything below 1x means you're losing money. The north star metric for any paid campaign, if you can't measure it, don't run it.
How it works
ROAS = Revenue ÷ Ad Spend. Target 3x+
Key takeaways
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Measures actual return, not just engagement
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Target 3x+ to stay profitable after overhead
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Always attribute to the right channel or you'll overcount
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Real-world example
You spend $2,000 promoting a digital course and earn $8,500 in sales. Your ROAS is 4.25x, for every dollar you put in, you got $4.25 back. Below 2x usually means losing money.
