Glossary

Whatis ROAS?

ROAS is return on ad spend: revenue produced divided by what you spent to produce it. A ROAS of 4 means four units of revenue for every one spent. It measures the campaign, not the business.

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ROAS is popular because it is simple and dangerous for the same reason. It ignores margin, so a high ROAS on a low-margin product can still lose money, and it ignores everything that happens after the first purchase.

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