term: roas
ROAS Definition - Internet Marketing Glossary

Definition of ROAS

ROAS stands for Return On Advertising Spending and represents the dollars earned per dollars spent on the corresponding advertising. To determine ROAS, divide revenue derived from the ad source by the cost of that ad source. Values less than one indicate that less revenue is generated than is spent on the advertising.

A full cost/benefit analysis requires consideration of profit--instead of revenue--versus advertising spending.


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