Marketing & Analytics
ROAS (Return on Ad Spend)
Definition
A marketing metric that measures revenue generated for every dollar spent on advertising. Calculated as Revenue from Ads divided by Cost of Ads. A ROAS of 4.0 means every $1 spent on advertising generated $4 in revenue. Unlike ROI, ROAS focuses specifically on ad spend and does not account for other costs like product costs, overhead, or salaries. Most e-commerce businesses target a minimum ROAS of 3.0 to 4.0, though the target varies by margin and business model.
Related Templates
These SheetCraft templates use or relate to ROAS (Return on Ad Spend):
- Marketing Campaign Dashboard, Track multi-channel marketing campaigns, Google Ads, Meta Ads, email, and organic, with ROAS, CPA, and A/B test logging.