Glossary
ROAS
Revenue divided by ad spend. A 3x ROAS means €3 back for every €1 in.
What it means
Revenue divided by ad spend. A 3x ROAS means €3 back for every €1 in.
ROAS is the number every agency leads with, and on its own it says nothing about whether you made money. A 3x ROAS is excellent on a 60% margin and ruinous on a 20% one. The number that matters is your break-even ROAS — what you need just to stand still.
It is also reported before returns. A fashion store with a 30% return rate is not earning what the interface says it is. We work to net.
Back to the full glossary, or read how we run accounts.
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