Return on ad spend (ROAS) is a helpful measurement to evaluate the overall effectiveness of a specific sponsored ads campaign, ad group, product, or targeting strategy. ROAS is available for vendors and sellers in Campaign manager and through downloadable reports.
We calculate ROAS by dividing the total sales generated by the advertising spend invested on the campaign (ROAS = Sales / Ad Spend). For example, if you spent $20 dollars on a sponsored ads campaign that generated $100 in sales, the ROAS will be 5.
ROAS is the inverse of Advertising cost of sale (ACOS), which is calculated by dividing advertising spend invested by the total sales generated (ACOS = Ad Spend / Sales). ROAS is represented as a number that is interpreted as an index (multiplier) rather than a percent (%).
ROAS includes attributed sales for advertised products, and attribution varies by campaign and advertiser type:
|Sponsored Products||Sponsored Brands||Sponsored Display (beta)|
|Sellers||7 days||14 days||14 days|
|Vendors||14 days||14 days||14 days|
ROAS is available in Campaign manager and through downloadable reports.
Use ROAS to understand how efficient your advertising investment is at driving attributed sales. As ROAS increases, your campaign becomes more efficient. Depending on your performance objective, ROAS is one metric that can be used to measure the effectiveness of ad products, campaigns, and keywords. Comparing ROAS over time or against similar tactics can help provide insight into where additional resources should be allocated.