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The product advertising glossary

What is ROAS?

Return on ad spend is attributed revenue divided by ad spend. It is commonly expressed as a multiple.

By Drizzle team

A practical example

$1,000 in attributed revenue from $250 in spend is 4× ROAS. That figure is revenue efficiency, not a $750 profit claim.

How to use it

Subtract product, shipping, payment, fulfillment, and other variable costs before deciding what ROAS is profitable. Use the break-even calculator with your own costs.

Put it in a creative brief

Write down the event, asset, or workflow you mean by ROAS before sharing a brief or report. For campaign measurements, keep the source and reporting window with the number. For creative work, attach an example so the team can assess the same thing.

Explore the creative testing guide, calculate campaign results with the ad metrics calculator, or return to the glossary.

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