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ROAS, or Return on Ad Spend, is a marketing metric measuring the revenue earned for every dollar spent on advertising.

Return on Ad Spend (ROAS) is a crucial metric used in digital marketing to assess the effectiveness of advertising campaigns. It calculates the total revenue generated from advertising efforts relative to the cost of those ads. ROAS helps marketers understand which campaigns are successful in terms of generating sales and contributes to making informed decisions about ad spend.

AbbreviationMeaningUsing byYear coined
ROASReturn on ad spendAdvertisersEarly 2000s

Example 1:

If a company spends $1,000 on an online advertising campaign and generates $5,000 in revenue from that campaign, the ROAS is 5:1. This means for every dollar spent, the company earned five dollars in return.

Example 2:

A business invests $2,000 in a social media ad campaign, which results in sales worth $10,000. The ROAS for this campaign is 5:1, indicating a high return on the investment.

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Matt McAuliffe

Matt McAuliffe

Co-Founder of Hyper Digital

As the co-founder of Hyper Digital, a leading digital marketing agency in New Zealand, Matt McAuliffe has established himself as a prominent digital marketing analyst and consultant. With years experience and thorough knowledge of the digital marketing industry, Matt is the driving force behind Hyper Digital’s ongoing success. Matt’s innovative marketing tactics and creative concepts is the reason why so many businesses across New Zealand have achieve success in the online space.

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