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Paid Ads · Glossary

What is Return on Ad Spend (ROAS)?

Definition

ROAS measures revenue earned for every rupee spent on ads: ad revenue ÷ ad spend.

ROAS explained

It shows whether campaigns are profitable. Compare it with your break-even ROAS (1 ÷ profit margin) to know when to scale.

Example

₹1,00,000 revenue from ₹20,000 ad spend = 5x ROAS.

Put it into practice

01What does ROAS stand for?
ROAS stands for Return on Ad Spend. ROAS measures revenue earned for every rupee spent on ads: ad revenue ÷ ad spend.
02What is ROAS in digital marketing?
ROAS measures revenue earned for every rupee spent on ads: ad revenue ÷ ad spend.
03Why is ROAS important?
It shows whether campaigns are profitable. Compare it with your break-even ROAS (1 ÷ profit margin) to know when to scale.
04Can iSmartsLab help with ROAS?
Yes. Our Google Ads Management team works on ROAS every day for businesses across Odisha and India. Book a free consultation and we will review your current setup and share a clear plan.
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