Return on Ad Spend (ROAS)
Definition
ROAS compares attributed advertising revenue with recorded advertising expenses.
The ratio of revenue attributed to an advertisement to the advertising expenses recorded for it.
Simply explained
The metric shows how much attributed revenue is generated per euro spent on the considered advertisement.
Why it matters in practice
The term is relevant for systematically improving digital visibility, qualified traffic, and content findability.
Example from business
10,000 euros of attributed revenue with 2,000 euros of advertising costs results in a ROAS of 5.
Limits and pitfalls
- Confusing ROAS with profit or ROI, ignoring attribution and margin, or double counting across channels.
Origin & history
ROAS became a common campaign metric with digitally measurable advertising.
Use in mid-sized companies
- Possible application: 10,000 euros of attributed revenue with 2,000 euros of advertising costs results in a ROAS of 5.
Frequently asked questions
What does Return on Advertising Spend (ROAS) mean?
The ratio of revenue attributed to an advertisement to the advertising expenses recorded for it. What mistakes should be avoided? Confusing ROAS with profit or ROI, ignoring attribution and margin, or double counting across channels.
Sources
Source checked on 10.10.2026. Editorial application examples are hypothetical; no evidence of real customer results.
Editorially reviewed on: