Return on ad spend (ROAS)

Return on ad spend (ROAS) measures the revenue generated for every dollar spent on advertising. This performance metric, calculated by dividing conversion value by ad cost, provides clear insight into campaign profitability. Unlike ROI which considers all costs, ROAS focuses specifically on advertising efficiency. Setting target ROAS goals helps optimize campaigns toward value rather than just conversion volume, with automated bidding strategies available to dynamically adjust bids to achieve specific ROAS targets.