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