GLOSSARY

ROAS.

Return on ad spend compares attributed revenue with advertising expenditure.

Why it matters

It is a revenue efficiency measure, not a profit figure. Use consistent tracking and compare it with the contribution margin needed to support advertising.

ROAS = attributed revenue ÷ ad spend

Put it in context

Use this concept alongside the relevant customer journey, business costs and measurement assumptions. A single metric rarely tells the whole story.

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