ROAS

Business & Finance abbreviation · Marketing & Advertising

ROAS
Stands forReturn on ad spend
CategoriesBusiness & Finance

ROAS stands for Return on ad spend, a marketing & advertising abbreviation.

Revenue generated by advertising divided by the amount spent on it, expressed as a ratio (4:1), a multiple (4x) or a percentage (400%). It measures the efficiency of campaigns, ad groups or channels.

Example: Prospecting ads run at 2.5x ROAS, while retargeting returns about 8x.

Usage notes

ROAS uses revenue, not profit, so a business with a 25% margin needs at least 4x just to break even on ad costs (1 divided by the margin). Unlike ROI, it ignores product, shipping and overhead costs. Platform-reported ROAS often overstates impact because ads get credit for sales that would have happened anyway, which is why marketers run incrementality tests. Pronounced "ROH-az."

More marketing & advertising abbreviations

  • POD – Point of difference
  • POP – Point of purchase
  • PPC – Pay-per-click
  • PQL – Product-qualified lead
  • PR – Public relations
  • RFM – Recency, frequency, monetary value
  • ROMI – Return on marketing investment
  • RPM – Revenue per mille
  • RTB – Real-time bidding
  • SAL – Sales-accepted lead
  • SEA – Search engine advertising
  • SEM – Search engine marketing

See all 111 marketing & advertising abbreviations →