Measurement
Return on Ad Spend
Revenue attributed to advertising divided by the media investment that produced it.
What it means in practice
Return on ad spend compares attributed revenue with media cost for the same campaign scope and period. Its value depends on revenue tracking, attribution settings, refunds, and the treatment of platform fees.
Why it matters
Return on ad spend guides decisions about whether to scale, maintain, or reduce advertising investment.
How it is used
Teams calculate return on ad spend for paid creator campaigns using tracked purchases from promoted content.
Also called
ROAS
Related terms
- Cost Per AcquisitionThe average media spend required to generate one completed conversion such as a purchase or signup.
- Return on InvestmentNet profit generated by an activity relative to its total cost, expressed as a ratio or percentage.
- Incrementality TestingA controlled experiment comparing exposed and withheld groups to isolate the additional results genuinely caused by a campaign.