ROAS
Also called return on ad spend.
Return on ad spend: revenue credited to ads divided by what the ads cost.
ROAS = revenue credited to the ads ÷ spend on those ads. A ROAS of 4 means $4 of revenue for each $1 spent.
Whether a ROAS is good depends on margin. Break-even ROAS is 1 ÷ gross margin, so a 40 percent margin needs a ROAS of at least 2.5 to cover the cost of the ads on the first order.
Each ad platform credits every sale its ads touched, so platform ROAS figures overlap. For a total, divide your store's revenue by all ad spend. See ROAS, blended ROAS and MER.
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