Glossary
Return on Ad Spend (ROAS)
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising. A ROAS of 4:1 means $4 in revenue for every $1 spent.
ROAS is a quick gauge of whether an ad channel or campaign is paying off. Unlike CAC, it focuses specifically on revenue against ad spend.
The ROAS you need to be profitable depends on your margins, so a healthy target varies from business to business.
Related terms
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