ROAS
読み方：R-O-A-S
Return on Ad Spend. Revenue generated for every dollar of advertising spend. ROAS = Revenue from Ads ÷ Ad Spend × 100. Unlike ROI, ROAS considers only advertising cost, not total costs. A key metric for evaluating paid media efficiency.
What is ROAS
ROAS (Return on Ad Spend) measures how much revenue your advertising generates per dollar spent. A ROAS of 400% means every $1 in advertising produced $4 in revenue.
ROAS Formula
ROAS (%) = Revenue from Ads ÷ Ad Spend × 100
Example: $50,000 in ad-attributed revenue from $10,000 in ad spend
ROAS = $50,000 ÷ $10,000 × 100 = 500%
Setting a Target ROAS
Your break-even ROAS depends on gross margin:
Break-even ROAS = 1 ÷ Gross Margin × 100
Example: 40% gross margin → break-even ROAS = 250%
Above this threshold, every additional advertising dollar generates profit.
ROAS vs. ROI
- • ROAS: Only includes advertising cost; uses revenue (not profit)
- • ROI: Includes all costs (ad spend + labor + production); uses profit
High ROAS can coexist with low ROI if agency fees, creative costs, or overhead are significant.
Limitation of ROAS
ROAS doesn't account for LTV. A campaign with lower ROAS acquiring customers with 3x higher retention may be far more valuable than a high-ROAS campaign with churning customers.