

Understanding ROAS: A Guide to Measuring Advertising Effectiveness
Return on Ad Spend (ROAS) is a metric used to evaluate the financial performance of advertising campaigns. It calculates the revenue generated for every dollar spent on ads. The formula is straightforward:ROAS = (Revenue from Ads) / (Cost of Ads)For example, if a campaign earns $5,000 in revenue and costs $1,000, the ROAS is 5:1 (or 500%). This means each dollar spent on ads generated $5 in return. ROAS helps businesses assess which campaigns drive profitability