ROAS
metricsReturn on Ad Spend
Definition
Revenue generated for every dollar spent on advertising. A ROAS of 4:1 means $4 in revenue for every $1 in ad spend.
How to Calculate ROAS
Revenue ÷ Ad Spend
Example
Scenario: You spend $10,000 on Meta ads and generate $42,000 in revenue
Calculation: $42,000 ÷ $10,000 = 4.2x ROAS
What's a Good ROAS?
3-5x for most DTC brands, but depends on margins
Common Mistakes
- Confusing ROAS with ROI (ROAS doesn't account for COGS)
- Using platform-reported ROAS without cross-checking with actual revenue
💡 Expert Tip
Blended ROAS across all channels is typically 20-30% lower than what Meta reports. Always cross-reference with your Shopify/backend revenue.
— Based on $100M+ in managed ad spend
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By Kristijan Arapov • Based on $100M+ in managed ad spend • Updated 2026