What is ROAS? Return on ad spend explained

ROAS (return on ad spend) is the revenue generated for every unit of currency spent on advertising.

How is ROAS calculated?

ROAS = revenue attributed to ads ÷ ad spend

Example

A campaign that spends $1,000 and drives $4,200 in attributed sales has a ROAS of 4.2 (often written 4.2x or 420%).

Why does ROAS matter for e-commerce?

ROAS is the most common efficiency target in e-commerce advertising, but it ignores margin: a 3x ROAS can be profitable on a high-margin product and loss-making on a low-margin one. Set a break-even ROAS from your margins before judging campaigns.

How does Posta use ROAS?

Posta's agents use ROAS when reviewing your accounts and recommending changes. See the AI media buying page for how it fits into your workflow.