Definition
Return on Ad Spend (ROAS) measures the revenue generated for every unit of money spent on advertising, calculated as revenue attributable to ads divided by ad cost. It's a channel- and campaign-level efficiency metric, usually expressed as a ratio or percentage.
Why it matters
ROAS tells you which ad campaigns pay for themselves, but it ignores margin and lifetime value — read it alongside CAC and LTV to avoid scaling something that looks efficient but loses money.
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