ROAS is return on ad spend, a paid media metric that compares revenue generated from advertising against the amount spent on ads.
Example of ROAS
Example: If a Google Ads campaign spends $2,000 and produces $10,000 in tracked revenue, the ROAS is 5.0, often described as 500% or 5:1. For lead generation, ROAS works best when leads are tied back to closed revenue in a CRM.
Why ROAS matters
It matters because strategy keeps channels from competing with each other. When this concept is clearly defined, the team can connect budget, audience, creative, offer, tracking, and reporting to revenue instead of chasing disconnected metrics.
Related terms
Frequently Asked Question
What does ROAS mean?
ROAS means return on ad spend, a paid media metric that compares revenue generated from advertising against the amount spent on ads.