Glossary

ROAS

Revenue generated per dollar of media spend, calculated as revenue divided by ad spend.

Media BuyingFoundationAlso called: Return on Ad SpendSource: Industry consensus

Definition

Revenue generated per dollar of media spend, calculated as revenue divided by ad spend.

Why it matters

ROAS is the metric that connects media performance directly to revenue, which is why it dominates e-commerce and retail media reporting specifically.

Key consideration

ROAS ignores margin. A 5x ROAS on a low-margin product can be less profitable than a 2x ROAS on a high-margin one — always pair ROAS with contribution margin before calling a campaign a success.

Related terms

Related benchmarks

APAC benchmarks for this metric are broken out by market and channel.

See ROAS benchmarks →

Run the numbers

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Practitioner notes

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