Return on ad spend (ROAS) metric measures how much revenue was earned through an ad campaign in comparison to how much budget was spent on it, helping to understand which ads are working and which are not.
Calculation:
ROAS = revenue from ad campaign / cost of ad campaign or (revenue from ad campaign / cost of ad campaign) x 100%
Example:
Schoffel spent £1,000 on their new fleece campaign ads, driving £8,000 in revenue. The return of ad spend was 8 or 800% (£8,000/£1,000=8 or (£8,000/£1,000)x100=800%)
