Definition How much revenue advertising brings in for every euro spent on it.
Also called ROAS, Return on ad spend
Example €40k of revenue from €10k of ad spend gives a ROAS of 4, or €4 for every €1.
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Why it matters It shows whether advertising generates enough revenue.
Where it is used Advertising dashboards and campaign reviews.
How to calculate it Revenue from ads ÷ ad spend
Worked example €40k of revenue from €10k of ad spend gives a ROAS of 4, or €4 for every €1.
