The affiliate glossary ↗AFFDude / Field notes
ROAS
In plain English
What does ROAS mean?
Return on ad spend: revenue divided by advertising cost. A ROAS of 3 means $3 back for every $1 spent on ads.
ROAS is the platform-native metric of Facebook, Google and TikTok because it flatters them: it excludes every cost except the ad spend. A campaign at 1.5 ROAS with a 40% product margin loses money. Convert ROAS to ROI before you decide anything.