Marketing & Advertisingintermediate
ROAS
Return on Ad Spend
Definition
A metric that measures how much revenue you generate for every £1 spent on advertising. ROAS = Revenue from ads ÷ Ad spend.
Why it matters
ROAS tells you whether your ads are making you money or costing you money. A ROAS below 1x means you are losing money on every pound spent.
Example
You spend £100 on Meta ads and generate £500 in sales. Your ROAS is 5x, meaning you earned £5 for every £1 spent.
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