ROAS (Return on Ad Spend)

ROAS (Return on Ad Spend) is the revenue generated for every dollar spent on advertising, calculated as revenue from ads divided by ad spend. A 4:1 ROAS means $4 in revenue for every $1 invested. It is the fastest read on whether a campaign or channel is paying off, though it measures gross efficiency rather than profit — so it is strongest when paired with margin, CAC, and LTV. Used alone, a high ROAS can still hide an unprofitable funnel.