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Marketing

ROAS

Return On Ad Spend

How much revenue each rupee of advertising brings back. A ROAS of 4 means ₹4 earned for every ₹1 spent.

Example

₹50,000 in ad spend that drives ₹2,00,000 in sales is a ROAS of 4×.

Formula

ROAS = Revenue From Ads ÷ Ad Spend

Related terms

CAC
The average amount you spend to win one new paying customer — all your marketing and sales costs divided by how many customers that money brought in.
CPA
What it costs, on average, for one desired action from an ad — like a sign-up, download or sale. Similar to CAC but usually measured per campaign or action.
ROI
How much you gained (or lost) on something compared with what it cost you, as a percentage.

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