What does ROAS mean?

by | Apr 28, 2020

Return on Advertising Spend or ROAS is similar to ROMI, except it is looking that the revenue figure generated by advertising (it does not take into account profit margin). The equation for ROAS looks as follows: Revenue Divided By Cost Equals Return On Ad Spend. ROAS advertising was popularized by Google Ads for the ROAS bidding strategy. Google Ad’s ROAS bid strategy allows an advertiser to set a figure for the target monetary return and Google’s algorithms will work to attempt to achieve that. In order to run this bid strategy, an advertiser must have properly set up value-based conversion tracking and have had at least 300 conversions in the past 30 days. Other common bid strategies are Viewable Impressions (display/video only), Views (video), Maximize Clicks, Maximize Conversions, CPA, Outranking Share (Search only), Search Page Location (Search Only), and more. 

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