In Marketing ROAS (Return on Ad Spend) provides a way for brands to measure how effective their advertising is. By comparing your revenue with the amount of money spent on advertising you can gauge the health of your business and the return you received for your investment.
The more impact your advertising messages have the more revenue you'll receive for each dollar spent. So the higher your ROAS is the better your performance.
This marketing metric highlights the efficacy of a digital advertising campaign and helps online businesses evaluate which methods are working and how they can improve future advertising efforts.
The ROAS formula can help brands figure out whether or not a strategy is successful. When tracked over time it can also be used to assess whether campaigns are improving or deteriorating. It can even help pinpoint the specific tactics that boost your bottom line the most.