analytics-dictionary / term / tracking & measurement
Return on ad spend (ROAS)
Return on ad spend is the revenue generated for every unit of currency spent on advertising.
Written by Reflective Data experts · updated Oct 5, 2026
ROAS = revenue attributed to ads divided by ad spend. It is simple and widely used, but it ignores margins and depends on the attribution model.
Profit-based measures and incrementality tests give a truer picture of what advertising really adds.
related
AttributionCustomer acquisition cost (CAC)Customer lifetime value (LTV)
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