Return on ad spend (ROAS)
Revenue generated per unit of media spend.
SEM
Definition
ROAS divides attributed revenue by media cost for a campaign, channel or account over a defined window.
It is only as reliable as the conversion tracking and attribution window behind it.
Why it matters
ROAS is the shared language between marketing and finance, and the basis for automated bidding targets.
How to apply it
- Import offline conversions where the sale closes off-site.
- Set targets per campaign based on margin, not a single blended number.