A performance metric used to describe the amount of revenue generated from spending on advertising. It is calculated by dividing the revenue generated by the actual spending on advertising.
It is How many dollars a campaign earns for every dollar spent. ROAS = revenue / media cost
For example, if a company spends $7000 on an advertising campaign that generates $28,000 in revenue, the return on ad spend it $28,000/$7,000 or 4:1. Unlike ROI, this does not take into account other costs such as employee time or other technologies.. ROAS is one of the main KPIs in determining campaign effectiveness.