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Glossary · Ads

ROAS (return on ad spend)

The sales a platform says its ads brought, divided by what the ads cost. It measures revenue, not profit.

Sales€7,940
Ad spend€1,180
Sales ÷ ad spend6.73×
Break-even ROAS1.93×
An example to show the arithmetic.

01 / How it is worked out

The formula

Formula

Sales attributed to the ads ÷ ad spend

Example

A campaign that spent €1,000 and is credited with €3,000 in sales has a ROAS of 3.00× — whether those sales made money depends on their margin.

02 / Why it matters

What it changes in a decision

  • Each platform counts the sales it believes it caused, by its own rules, so one order can be claimed by Meta and Google at once. The sales also include the VAT in Europe and the UK, which the store does not keep.

  • ROAS is useful only next to the line it has to clear: the break-even ROAS of the products the ads sell.

See every one of these on your own store.

Profflow works them out from your orders, ads and costs, order by order — read-only, in about ten minutes.