Glossary4 min

ROAS: definition, formula and benchmarks

Everything about ROAS: formula, channel benchmarks and common mistakes.

ROAS: definition, formula and benchmarks

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 = 4.17x

Benchmarks

ChannelAverage ROASGood ROAS
Meta Ads2.5-3.5x4x+
Google Shopping4-6x8x+
Google Search (branded)8-15x20x+
TikTok Ads1.5-2.5x3x+
!

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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Mezri
MezriFounder of Fullmetrix

Founder of Fullmetrix. E-commerce acquisition and analytics expert, I help merchants turn their data into profitable decisions.

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