ROAS (return on ad spend)
Revenue a campaign brought in for every unit of currency spent on it.
Also called: return on ad spend
Formula
ROAS = revenue from the campaign ÷ campaign spend
A ROAS of 4 means every AED 1 spent brought in AED 4 of revenue. It is usually written as a ratio (4:1), a multiple (4x) or a percentage (400%), which all mean the same thing.
ROAS counts revenue, not profit. A 3x ROAS on a product with a 25% margin loses money once the cost of the goods is taken off. For a client with thin margins, agree a break-even ROAS before the campaign, so a "good" number is actually good.