← Back to glossary
Performance & Measurement
3 min read
ROAS, or return on ad spend, is the revenue you earn for every unit of currency spent on advertising — revenue divided by cost. It is the headline efficiency metric for performance advertising, and, like CPA, a target that automated bidding can be pointed at directly.
Track ad-driven revenue. Attribute sales back to the campaigns that drove them.
Divide by spend. Revenue over cost gives the return ratio.
Read the ratio. A 4x ROAS means four earned for every one spent.
Set it as a target. Bidding can optimise straight to a ROAS goal.
Conversion rate. More sales per click lifts return.
Order value. Higher basket sizes raise revenue per conversion.
Targeting. Reaching buyers, not browsers, improves it.
Cost efficiency. Cheaper clicks and impressions stretch spend.
Revenue focus. Unlike CPA, it weighs how much each sale is worth.
Bidding target. Target-ROAS strategies optimise to it automatically.
Profit proxy. With margins in mind, it signals profitability.
Revenue, not profit. High ROAS on thin margins can still lose money.
Attribution reliance. It inherits every flaw in your attribution.
Short-termism. It can underrate awareness that pays off later.
Target realism. Too high a goal throttles volume.
Keep exploring
Browse all 61 advertising terms
→
OpenAds connects your assistant to every major ad platform, so you can plan, launch and optimise campaigns in plain language — approving the moves that matter.
Explore OpenAds