It measures how much revenue is generated for every euro invested in an advertising platform.
ROAS is obtained by dividing the revenue attributable to a campaign (or a specific channel like Meta Ads) by the cost of that same campaign. For example, a ROAS of 4 means that for every euro spent on ads, the campaign generated 4 euros in sales.
It is the favorite KPI of Traffic Managers and performance agencies. It allows steering short-term profitability and making millimeter-precise budget arbitrations between different platforms (Google Ads vs TikTok, etc.).
"ROAS is useful but often misleading. It overvalues retargeting campaigns and ignores synergies between channels (Halo Effect). We use ROAS for day-to-day tactical steering, but we base our strategic Scale decisions on MER."
Let's conduct an audit of your metrics together to identify your true growth levers.
