ROAS (Return On Ad Spend) measures the revenue generated for every dollar spent on advertising. It's the fundamental metric for evaluating campaign profitability.
ROASReturn On Ad Spend — the ratio of revenue to ad spend
Formula
ROAS calculation
ROAS = Revenue from ads / Ad spend
Example:
Revenue: 5,000 EUR
Spend: 1,200 EUR
ROAS = 5,000 / 1,200 = 4.17xBenchmarks
| Channel | Average ROAS | Good ROAS |
|---|---|---|
| Meta Ads | 2.5-3.5x | 4x+ |
| Google Shopping | 4-6x | 8x+ |
| Google Search (branded) | 8-15x | 20x+ |
| TikTok Ads | 1.5-2.5x | 3x+ |
!
Platform ROAS is misleading
ROAS reported by Meta or Google is overestimated by 20-40%. Always cross-reference with real orders for reliable ROAS.
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