Metrico glossary
Return on Ad Spend (ROAS)
ROAS compares revenue credited to advertising with the advertising spend used to generate that measured result.
Definition
ROAS is an advertising-efficiency ratio. Its meaning depends on the revenue source in the numerator: a provider-reported ROAS uses that provider's attribution model, while a store-revenue-to-spend ratio answers a broader business-efficiency question. Always label the source, time window, account, and currency before comparing ROAS values.
Formula
ROAS = attributed revenue ÷ ad spend
Example
$12,000 of provider-attributed revenue ÷ $4,000 of spend = 3.0 ROAS.
What to remember
- ROAS is not the same as profit.
- Different providers can attribute the same order differently.
- Margin, refunds, inventory, and repeat value can change the scaling decision.