ROAS: return on advertising spend
ROAS (Return on Ad Spend) is attributed revenue divided by advertising spend: the revenue generated for each currency unit spent on ads.
Formula
ROAS = revenue attributed to advertising ÷ advertising spend
ROAS uses revenue, not profit. A ROAS of 3× means 3 ₽ of revenue per 1 ₽ of ad spend; it says nothing about margin.
- Revenue — revenue attributed to advertising (₽)
- Spend — advertising budget for the period (₽)
Worked example
- Revenue from advertising: 360 000 ₽
- Advertising spend: 120 000 ₽
- ROAS = 360,000 ₽ ÷ 120,000 ₽
Result: 3× revenue per ₽ spent.
How to interpret it
- The break-even ROAS threshold depends on contribution margin. At 40% margin, a 2.5× ROAS produces zero profit, not a gain.
- ROAS below 1× means revenue is lower than ad spend.
Common mistakes
- Treating ROAS as profit and ignoring variable costs.
- Comparing channel ROAS when product margins differ.
- Using ROAS as the only criterion for stopping ads.
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Editorial team: MARKMA Editorial Team. Reviewed: .