WARC DC Series on Metrics & Measurement: Understanding ROAS (Return on Advertising Spend)
Jo Bowman and Gregory Grudzinski
ROAS is a tool that can be very helpful in measurement – but it can also be a bit of a blunt instrument. In order to use it effectively, advertisers should understand the full meaning behind the metric.
ROAS stands for Return on Advertising Spend, and it’s designed to help marketers calculate the bang they’re getting for their advertising buck.
It’s an easy calculation to make: you divide the revenue your brand or product generates by the...