E-commerce
Return on ad spend (ROAS)
Revenue attributed to ads divided by what was spent on them.
What it is
It compares what the ads brought in with what they cost: a ROAS of 4 means four in revenue for every one spent. It is the main efficiency measure for stores, because each sale carries a value the platform can see.
Why it matters
For e-commerceIt is the target most store campaigns bid toward, so it shapes which products and audiences get budget.
How it is measured
Formula
ROAS = attributed revenue / ad spendDivide attributed revenue by ad spend, per campaign or channel.
A common mistake
ROAS depends on how revenue is attributed and leaves out margin and repeat purchases. A campaign can show a strong ROAS on sales that would have happened anyway.