How to use it
- Enter revenue attributed to the advertising activity.
- Enter the matching ad spend for the same scope and period.
- Calculate the ROAS multiple, percentage and revenue per unit spent.
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Compare attributed advertising revenue with ad spend.
ROAS, or return on ad spend, compares revenue attributed to advertising with the amount spent on those ads.
ROAS equals advertising revenue divided by ad spend. Multiplying the ratio by 100 expresses the same result as a percentage.
Advertising revenue of 10,000 from spend of 2,500 produces 4x ROAS, or 400%, meaning 4 in revenue per 1 spent.
ROAS measures attributed revenue rather than profit. It does not include product cost, overhead, attribution uncertainty or other unentered expenses.