RoAS Calculator
Ensure that your Ad Spend & Ad Revenue are in the same currency.
Your RoAS is
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What Is Return On Ad Spend (RoAS)?
RoAS is a metric to determine how much revenue you earn from spending on advertising. If your RoAS is 500%, then it means you earned 5X the amount spend on ads.
How To Calculate?
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Think of this as a medical checkup for your business.
Know and grow your brand health with similar airtight performance indicators.
FAQs
Ad Spend includes the money spent on advertising campaigns and the people who manage those campaigns for you.
The benchmark for RoAS will differ by industry, your products/services and the market forces but ideally, you’re supposed to earn $4 for every $1 spent on ads — A 4:1 ratio.
RoAS shows the health of your ad campaigns. It identifies your top performing channels, determines your Customer Acquisition Cost (CAC), lets you make data-backed decisions, and optimize your Ad Spend for maximized ROI and profitability. For example, if your RoAS is below the ideal 4:1 ratio, then it might be time to rethink your strategy and do course corrections.
RoAS is influenced by metrics like Cost-Per-Click (CPC), Clickthrough Rate (CPC), Conversion Rate, Average Order Value (AOV), Customer LifeTime Value (CLTV), Impressions, Quality Score and Ad Spend as well as factors such as landing page experience, ad creativity & relevance, offerings, industry, and market forces.
Yes. RoAS can be blended or for a channel. To do it for a channel, divide the ad revenue from a channel by the ad spend on that channel and multiple it by 100.
Yes, our RoAS calculator can be adjusted for different currencies. Simply ensure that the revenue and spend inputs are in the same currency.
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