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What is Return on ad spend (ROAS)?

Revenue generated for every dollar of ad spend.

Return on ad spend, or ROAS, is the revenue generated for every dollar spent on advertising. A ROAS of 4 means you earned four dollars in revenue for every one dollar of ad spend.

ROAS is the headline profitability metric for ecommerce advertising. The target ROAS you need depends on your margins: a business with thin margins needs a higher ROAS to be profitable than one with high margins.