ROAS - Return on Ad Spend

ROAS is revenue divided by ad spend. The inverse of ACoS.

FormulaROAS = Ad-Attributed Revenue / Ad Spend

ExampleSpend $10, generate $50 in ad-attributed sales, ROAS is 5 or 5x.

ROAS and ACoS are mathematically the same metric expressed differently. 5x ROAS equals 20% ACoS. Pick whichever your team finds more intuitive and stay consistent.

Same caveats as ACoS: ROAS captures attributed revenue only, so it shares the blind spots around cannibalisation and brand-term ads. Use TACoS for the business view.

Read the full essay on ROAS →