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Digital Marketing
ROAS is the revenue earned for every rupee or dollar spent on ads: revenue from a campaign divided by its cost.
Return on ad spend is the standard performance measure for e-commerce and any business that can tie a sale to an ad. A ROAS of 4 means four units of revenue for every unit spent.
ROAS looks at revenue, not profit. A campaign can show a healthy ROAS and still lose money once product cost, delivery, and returns are included.
Example
An online clothing store spends PKR 200,000 on Google Shopping ads that generate PKR 900,000 in sales, a ROAS of 4.5.
Why it matters
Setting a break-even ROAS from your margins turns ad reporting into a clear decision: scale what is above it, fix or pause what is below.
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Digital Marketing
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