The revenue generated for every dollar spent on advertising, typically expressed as a ratio (e.g., "4x ROAS" means $4 in revenue for every $1 spent).
Why it matters
ROAS is the most direct efficiency measure in paid media, letting teams compare performance across campaigns, channels, or creative variants on a like-for-like basis, and decide where to increase or cut spend.
In a sentence
"We shifted budget away from the campaign with 2x ROAS and into the one delivering 6x."
Related terms
- Often confused with: ROI (ROAS specifically measures revenue relative to ad spend; ROI is a broader financial concept that can account for all costs, not just media spend, and is often expressed as a percentage rather than a ratio).
- Synonyms: Ad efficiency ratio (informal).