Jan 6, 2026
Return on Ad Spend
ROAS
Revenue generated for every dollar spent on advertising. The primary efficiency metric for e-commerce and performance campaigns.
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Formula:
Revenue ÷ Ad Spend
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Benchmarks
Break-even: 2-3x (depends on margins). Profitable: 4x+. LinkedIn B2B: 113%. Google Search B2B: 78%. Meta B2B: 29%.
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Why It Matters
ROAS varies by margin structure—10x ROAS on 10% margins equals 2x ROAS on 50% margins in actual profit. Platform-reported ROAS often inflates results by 20-50%; validate against backend revenue. Meta whistleblower alleged artificially inflated Shops ROAS in August 2025.
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