ROAS
Return on Ad Spend: revenue in relation to advertising spend.
Definition
ROAS stands for Return on Ad Spend and is calculated as revenue divided by advertising cost. A ROAS of 4 means that one euro of ad spend generated four euros of revenue.
Also known as: Return on Ad Spend
Context
ROAS is important but not complete. Contribution margin, margin, returns, new-customer share, and customer lifetime value decide which ROAS is truly profitable.
In influencer campaigns, some impact may happen later or through other channels and should not be ignored.
Optimization
Better creator selection, clearer briefings, stronger landing pages, offer mechanics, and paid amplification can improve ROAS.
ROAS should be evaluated by creator, platform, format, and audience instead of only campaign-wide.



