ROAS (Return on Ad Spend)

ROAS (Return on Ad Spend) is the revenue generated for every unit of currency spent on advertising.

A ROAS of 4 means you earned $4 for every $1 spent. It’s the headline efficiency metric for paid social.

What counts as “good” ROAS depends on margins — a healthy figure for one business can be unprofitable for another.

Example: $5,000 in revenue from $1,000 in ad spend is a 5× ROAS.

Put it into practice

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