Metrics ROAS
ROAS (Return On Ad Spend)
How much revenue every euro of ad budget brings in, the core metric for advertising return.
By Tanguy De Keyzer · Founder & digital strategist
What is ROAS?
ROAS, Return On Ad Spend, measures how much revenue you get back per euro of ad spend. A ROAS of 4 means: for every 1 euro of advertising you bring in 4 euros of revenue.
ROAS = revenue from ads ÷ ad costs
Why it matters
ROAS tells you in a single number whether your campaigns are profitable. It makes budget decisions objective: scale up what performs, cut what loses. Note that ROAS looks at revenue, not profit. A healthy threshold depends on your margins.
ROAS vs. CAC
ROAS looks at return from the advertising euro; CAC looks at the cost per acquired customer. Together they give a complete picture of how efficiently you grow.
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