ROAS
What does it mean
ROAS stands for Return on Advertising Spend, which in Slovak means return on advertising expenses. It is a metric, used to measure the effectiveness of an advertising campaign.
More info
ROAS is calculated as follows:
ROAS = (total revenue from advertising) / (total advertising costs)
For example, if a company spent 1000 € on advertising and earned 5000 € in sales from this advertising, its ROAS is 5. This means, that the company earned 5 € for every euro, it invested in advertising.
ROAS is an important indicator for businesses, that invest in advertising. It can help them determine, which advertising campaigns are successful and which are not.
A high ROAS is a positive sign that the advertising campaign is successful.
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