Term

ROAS

“how much was earned for every dollar spent on advertising.”

Formula

ROAS = Revenue (attributed to advertising) / Advertising Expenses

ROAS (Return on Ad Spend) — how much revenue advertising generated for every $1 of advertising expenses.

Detailed Explanation

ROAS depends on the marketplace's attribution (what is considered “advertising” revenue). Therefore, ROAS is useful for optimizing campaigns, but for business control, it is better to supplement it with DRR and margin.

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