What is Return on Ad Spend?
An example of an AI chatbot conversation about understanding return on ad spend.
What is Return on Ad Spend?
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising.
How do I calculate my ROAS?
To calculate ROAS, divide the revenue generated from ads by the total ad spend. For example, if you made $500 from a $100 ad spend, your ROAS is 5.
What is a good ROAS?
A good ROAS varies by industry, but generally, a ROAS of 4:1 or higher is considered effective.
Can you give me an example of ROAS in action?
Sure! If a company spends $200 on ads and earns $800 in sales, their ROAS would be 4, meaning they earned $4 for every $1 spent.
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