What is ROAS?

ROAS (Return On Ad Spend) measures how much revenue you earn for every dollar spent on advertising, written as a ratio: a 4:1 ROAS means $4 back for every $1 spent. It's the go-to efficiency metric for ecommerce and any campaign with trackable revenue. What counts as "good" depends on your margins: a business with slim margins needs a much higher ROAS to profit than one with fat margins. For lead-generation businesses, cost per qualified lead is often a more practical target than ROAS, because revenue lands later in the sales process.