SYS/DEF
ROAS
Return on ad spend: attributed revenue / spend. 4 is not “×4 margin”. Check whether revenue is tax-in, margin, or GMV.
Definition
ROAS is the revenue the platform (or your analytics) attributes to the campaign, divided by spend. A ROAS of 4 means €4 of attributed revenue per €1 spent — before margin, VAT, returns, and LTV. It is not ROI: ROI subtracts cost. A ROAS of 4 with 20% margin is a loss.
Like CPA, it inherits the attribution model and the window. Two incomparable ROAS figures are born from a last-click → data-driven switch.
When it matters
SEA steering, framing a landing test (CVR must be read through to ROAS, not stop at the click), arbitrage vs SEO (value of organic traffic as CPC proxy vs paid ROAS).
Paired with CPA and post-acquisition margin, it avoids the meeting where everyone is “right” with a different number.
Pitfalls
Taking Google Ads revenue for margin. Targeting a ROAS that ignores LTV (subscription). Comparing Search ROAS and YouTube ROAS as siblings. Forgetting that ROAS rises if you cut the top of funnel — until volume dries up.
Related terms
Related tool
Spend, conversions, revenue → CPA, ROAS, post-acquisition margin: Open CPA and ROAS.