ROAS, short for Return on Ad Spend, measures how much revenue a campaign brings in relative to what was spent on it. If you spend $500 on ads and generate $2,000 in sales, your ROAS is 4x, meaning you earned four dollars for every dollar invested.
It’s one of the most direct ways to evaluate advertising performance. While metrics like CTR and CPM tell you how an ad is being received, ROAS cuts straight to the bottom line and tells you whether your spend is actually paying off. Most advertisers use it as a primary benchmark when deciding where to scale and where to cut back.