ROAS (return on ad spend) is a basic measure of a campaign’s effectiveness. In contrast to ROI (return on investment) which measures overall profitability.
Discussions of what is a good ROAS will inevitably mention, directly or indirectly, that it depends on profit margins.
i.e. ROAS users guesstimate profitability, without bothering to calculate it.
Sometimes you will see ROAS calculated strictly on media costs (such as at online media companies), while practitioners may include other campaign costs for production and management.
Was this useful? Check out our growing collection of marketing calculators.