Return on Ad Spend (ROAS) is a marketing metric that estimates the effectiveness of an advertising campaign by evaluating the revenue generated with the amount spent on advertising. It helps advertisers assess the financial performance and efficiency of their ad campaigns.
ROAS is figured by dividing the revenue generated from the campaign by the advertising cost and expressing it as a ratio or percentage. The formula for calculating ROAS is as follows:
ROAS = Revenue Generated from Ad Campaign / Advertising Cost
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