Return on ad spend is one of great metrics to identify if your campaigns are positive for your business or not. You need to have ROAS higher than 1 to get more money from your ads than you spend for them. Alternatively you could have ROAS around 0,9 but this will mean that you calculate that users came back to your business in future to make another purchase.
ROAS Calculator
Settings:
Currency:
First Campaign
Ad Spend:Revenue:
The calculation of ROAS is simple:ROAS = (revenue / adSpend)
Is ROAS good metric for bussines?
Be careful about ROAS because this metrics is about “adSpend” and your “revenue” but every business usually has more costs than just adSpend. So if you need to have better ROAS then is important to calculate adSpend with other costs (e.g. transport, storage, staff, …).
