Learn · Understanding ROAS · Step 1 of 2

What is ROAS?

Objective: Understand the ROAS formula.

Return on ad spend (ROAS) compares revenue attributed to ads with what the ads cost. It ignores product costs, so it is not profit.

ROAS = Revenue ÷ Spend

Worked example: £2,700 revenue ÷ £540 spend = 5x.

Impressions

10,000

Clicks

300

Spend

£225

Conversions

15

Revenue

£2,700