Return on Ad Spend is an important marketing statistic that helps you quickly gauge how well your advertising is working. ROAS is calculated by taking your sales and dividing it by the amount you spend on a particular advertising channel. The higher your return, the more effective your advertising source is. The Return on Ad Spend formula is:
RoAS = Sales / Spend
ROAS shows you not only what is leading to sales, but also takes into consideration the value of those conversion.
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