ROAS

Return on Ad Spend (ROAS) is a metric used in digital advertising to measure the revenue generated for every dollar spent on advertising. It is calculated by dividing the revenue driven by a particular advertising campaign by the cost of that campaign. ROAS is a crucial indicator of the effectiveness and profitability of an ad campaign. It helps advertisers understand how efficiently their advertising dollars are being converted into sales, providing a direct insight into the financial return on their investment. This metric is particularly important for optimizing ad spend, improving campaign strategies, and ensuring that marketing budgets are used effectively to generate maximum revenue.