Glossary · R
Return on Ad Spend (ROAS)
Definition
What is Return on Ad Spend (ROAS)?
Return on Ad Spend divides revenue attributed to advertising by media spend to indicate how much tracked revenue each advertising dollar produced.
Business context
Why does it matter?
ROAS excludes margin, returns, creative production, and team cost, and it changes with attribution rules. It is a media-efficiency signal, not a complete profit or growth metric.
Decision prompts
Three questions to ask in practice
- 01
Which business outcome does this metric or practice represent?
- 02
Are data sources and attribution rules consistent?
- 03
What adjacent metric could be harmed while this one improves?
Understanding the term is the start. Making the tradeoff is the work.
If you are evaluating Shopify Plus, headless architecture, growth systems, or cross-market operations, Tenten can help frame the decision.