ROAS, or Return On Ad Spend, is a metric used in digital advertising to measure the effectiveness of advertising campaigns in generating revenue relative to the amount spent on advertising.
It is calculated by dividing the total revenue generated from advertising by the total amount spent on advertising, expressed as a ratio or percentage.
ROAS helps advertisers understand their advertising efforts’ return on investment (ROI) and evaluate the profitability of different marketing channels, campaigns, or ad groups.
A higher ROAS indicates that the advertising campaign generates more revenue than advertising costs, while a lower ROAS suggests that the campaign may need optimization to improve its effectiveness.
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