What is ROAS? – Definition
ROAS (Return on Advertising Spend) is a measure of advertising campaign effectiveness that helps determine how much money was earned relative to the amount spent on advertising.
How to calculate ROAS?
To calculate ROAS, divide the revenue from advertising by the costs incurred. If you want to obtain a percentage result, multiply it by 100%.
For example, if the ROAS is 5 (500% in percentage terms), it means that for every dollar spent on advertising, the company earned 5 dollars.
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