Marketing & Acronyms

ROAS (Return on Ad Spend)

Quick Definition

ROAS is revenue generated per dollar of advertising spend, expressed as a multiple (4x ROAS = C$4 revenue per C$1 spent).

In context

Standard performance metric for paid advertising. Healthy benchmarks vary by margin: 4x+ for low-margin ecommerce, 2x+ acceptable for high-margin services. Don't confuse ROAS with profit (ROAS doesn't account for COGS or operating costs).

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