Return on Ad Spend (ROAS) measures how much revenue you generate for every dollar spent on advertising. This metric helps evaluate the effectiveness of your marketing campaigns. For example, if you spend $100 on ads and generate $500 in sales, your ROAS is 5:1 (or 500%). This calculation shows which advertising channels and campaigns deliver the best value for your marketing budget.
See also: Return on Investment (ROI), Cost-Per-Click (CPC)
