What is ROAS?

Short answer

ROAS stands for return on ad spend. It shows how much revenue you get back for every euro you spend on ads.

Do you spend 100 euros and get 500 euros in revenue? Then your ROAS is 5. Or 500 percent.

ROAS works well for webshops. There you see the revenue right away. For services you often measure enquiries. Then you look at the CPA instead.

Note: ROAS is about revenue. Not about profit. So also count your purchase costs and time.

Real-life example

A webshop for garden products had a ROAS of 3. After removing products with low margins the ROAS went up to 6.

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