ROAS: Return on Advertising Spend

ROAS quickly explained

Here is a quick explanation, what is ROAS in marketing? What does ROAS stand for? How does ROAS work? Still questions for your campaign? Write and or call: Contact.

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ROAS simply explained

Formula: How to calculate Return on Ad Spend?

  • ROAS = advertising revenues / advertising costs

Example ROAS

If you spent 20,000 euros on Facebook ads in January and generated a total profit of 80,000 euros, the return on ad spend is 4 euros. This means that every euro invested generated a profit of 4 euros.

The ROAS analysis shows whether an analyzed social media channel is profitable for you. Because you certainly don’t want to spend more money on advertising in the long run than it brings in. So a higher ROAS is better.

Handy for small, quick calculations:

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