Return on Ad Spend (ROAS)

Return on ad spend, or ROAS, compares revenue attributed to advertising with the amount spent on those ads. If a service business evaluates campaigns, it should use a consistent period and clear rules for which revenue can reasonably be attributed to each channel. A high ROAS figure does not necessarily imply healthy profit because labor, materials, overhead, refunds, and other expenses may be excluded. Attribution can also be incomplete when sales occur by phone or after several contacts. ROAS is narrower than overall marketing return on investment, which considers a wider set of costs and financial outcomes.