Return on ad spend

roas

Description: The Net sales the ads brought in, for each unit of money spent on them. It looks at sales, not profit.
When to use: Use it to compare ads for products that earn about the same. When margins or returns differ, use Profit on ad spend. It counts profit, not sales. For all marketing at once, use Marketing efficiency ratio.
Formula: Net sales from the orders the ads brought in, divided by ad spend. Ad spend is the part of Marketing spend paid to ad platforms.

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