Return on Ad Spend (ROAS) is a key metric used to evaluate the revenue generated for every unit of currency spent on advertising. It’s calculated by dividing total revenue from ads by the total ad spend. For example, a ROAS of 4 means you earn $4 for every $1 spent. ROAS helps marketers assess campaign profitability, allocate budgets more effectively, and optimize ad performance across channels. It’s essential for tracking the efficiency of paid marketing efforts.
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