ROAS (Return on Ad Spend) is a marketing metric used to measure the effectiveness of an advertising campaign.
Specifically, ROAS is used in Google Ads to track the amount of revenue generated for each dollar spent on advertising.
ROAS is calculated by dividing the revenue generated from an ad campaign by the cost of the campaign.
For example, if an ad campaign costs $100 and generates $500 in revenue, the ROAS would be 5 ($500 / $100).
ROAS is an important metric for advertisers because it helps to determine the profitability of an advertising campaign.
By analyzing ROAS, advertisers can make informed decisions about how to allocate their advertising budget and which campaigns are delivering the best results.
In Google Ads, advertisers can set ROAS targets to help guide their bidding strategy.
For example, if an advertiser has a target ROAS of 4, they will adjust their bids and target keywords to achieve a return of $4 for every $1 spent on advertising.
Overall, ROAS is a valuable metric for measuring the effectiveness of advertising campaigns and can help advertisers optimize their ad spending for maximum profitability.