ROAS

Return on ad spend: revenue attributed to ads divided by what the ads cost.

What it means in practice

A ROAS of 3 means three euros of revenue for every euro spent. It says nothing about profit: a high ROAS on a product with thin margins or many returns can still lose money. Compare it with your break-even ROAS before you scale.

In Commerce365

ROAS Leak Hunter and Cross-Platform ROAS Comparator set platform-reported ROAS next to Shopify revenue per campaign.

Background

See the terms in practice