Paid Media

Return on Ad Spend (ROAS)

Also: ROAS

The revenue generated for every unit of money spent on advertising, a direct measure of a paid channel's efficiency.

Why it matters

ROAS connects ad spend straight to revenue, which makes it one of the clearer ways to judge whether paid media is paying for itself, especially where deals close quickly.

How it is calculated

ROAS = revenue attributable to ads / ad spend (often expressed as a ratio, for example 4:1).

What good looks like

A healthy ROAS depends on margins and sales cycle; the harder part in B2B is attributing revenue correctly across long, multi-touch journeys.

Related terms

Cost Per Acquisition (CPA)Attribution WindowCost Per Lead (CPL)Paid Search
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