What is ROAS?
An example of an AI chatbot conversation about Return on Advertising Spend (ROAS).
What is ROAS?
ROAS stands for Return on Advertising Spend. It's a marketing metric that measures the revenue generated for every dollar spent on advertising.
How do you calculate ROAS?
You calculate ROAS by dividing the total revenue generated from ads by the total cost of those ads. The formula is: ROAS = Revenue / Ad Spend.
What is a good ROAS?
A good ROAS can vary by industry, but generally, a ROAS of 4:1 (or 400%) is considered a good benchmark, meaning you earn $4 for every $1 spent.
Can ROAS be negative?
Yes, ROAS can be negative if the advertising costs exceed the revenue generated from those ads, indicating a loss.
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