What is ROAS?

ROAS, return on ad spend, is revenue attributed to ads divided by ad spend. A ROAS of 3 means $3 of revenue for every $1 spent.

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ROAS (return on ad spend) is the revenue credited to ads divided by what was spent on them. A ROAS of 3 means $3 of revenue for every $1 of ad spend. It depends on the platform's attribution, so it is best for comparing campaigns within one platform.

Break-even ROAS is 1 divided by gross margin: a store with a 40% margin needs a ROAS above 2.5 to make money on ads.

SOURCES

  1. Shopify blog: ROAS

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