ROAS (Return on Ad Spend)

ROAS measures revenue generated per dollar spent on advertising — a $4 ROAS means $4 in revenue for every $1 spent. It's one of the most common headline metrics in paid media reporting, often cited by agencies and tools as proof of results.

ROAS is revenue-based, not profit-based — a campaign can post an impressive ROAS while still being unprofitable once product cost, fulfillment, and overhead are factored in. It's also entirely dependent on the attribution model used to calculate it, which is part of why the same campaign can show different ROAS figures depending on which analytics tool is measuring it.

ROAS comes up throughout our AI Ad Platforms & PPC and AI Analytics & Attribution categories — see Madgicx's documented ROI figures and our attribution reviews for how measurement methodology affects the number.