Return on ad spend (ROAS)

Return on Ad Spend (ROAS) is a metric that measures how much revenue you earn for every dollar you spend on advertising. It is a way to evaluate the effectiveness and profitability of your ad campaigns. The formula for calculating ROAS is:

ROAS = Revenue from ad campaign / Cost of ad campaign

For example, if you spend $1000 on an ad campaign and generate $5000 in revenue, your ROAS is:

ROAS = $5000 / $1000 = 5

This means that for every dollar you spent on advertising, you earned five dollars in return. A higher ROAS indicates a more successful and efficient ad campaign.