Performance marketing
ROAS
Return On Ad Spend — how much revenue each unit of currency invested in advertising brings back.
ROAS (Return On Ad Spend) measures the revenue generated per unit of ad spend. A ROAS of 5 means every $1 spent on ads returned $5 in revenue.
Why it matters
ROAS is the fastest read on campaign efficiency. But beware — it's revenue, not profit. Your margin sets the healthy threshold.
Real-world example
A campaign with a ROAS of 8 looks great until you learn the margin is 20%. Only after subtracting product and logistics costs do you know whether you're truly making money.
Related terms
Related serviceAI Performance
Full glossarynifty — minds · Glossary