What Is Return on Ad Spend (ROAS)?

Return on Ad Spend (ROAS) measures the gross revenue generated directly from advertising divided by the ad spend.

Formula & calculation

ROAS = Revenue from Ads / Ad Spend

Practical example

If an online store spends 2,000 USD on a campaign and generates 8,000 USD in tracked sales, its ROAS is 4.0x.

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AdsRanger (2026). What Is Return on Ad Spend (ROAS)?. Retrieved 13 November 2026, from https://adsranger.com/en/glossary/roas.

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