What it measures
ROAS shows how much attributed revenue is generated for each pound spent on advertising.
Your result—
ROAS measures revenue relative to ad spend. Profitability also depends on gross margin, fulfilment, fees and other operating costs.
How ROAS works
Formula
ROAS = attributed revenue ÷ ad spend. Break-even ROAS = 1 ÷ gross margin as a decimal.
Use the result
Compare the metric over time or between campaigns using the same measurement basis.