What does ROAS measure?

What does ROAS measure?

• A. Rate of Ad Spend
• B. Revenue On Ad Schedule
• C. Ratio Of Ad Submissions
• D. Return on Ad Spend

Answer: (D)

ROAS measures how effectively your advertising turns spend into revenue. It looks at the revenue attributed to ads relative to the amount you spent on those ads, telling you how many dollars of revenue you earn for every dollar spent on advertising. For example, spending $100 on ads that generate $300 in revenue yields a ROAS of 3, or 300%. This is a revenue-focused efficiency metric and doesn’t subtract other costs, so it’s different from ROI, which accounts for overall profitability. The other options don’t describe the relationship between ad spend and the revenue it generates, so they don’t capture what ROAS shows.