How do you display Return on Ad Spend?
- Mar 11, 2019
- By Abby Perkins
- Comments Off on How do you display Return on Ad Spend?
Return on Ad Spend, or ROAS, can be calculated as either a revenue amount or as a ratio.
In Glew, we display ROAS as a ratio on the Facebook performance tab (Performance > Advertising > Facebook), since that is the standard for Facebook. We display overall ROAS as a revenue dollar amount elsewhere in the app.
Here’s an example: If you spent $1,000 on advertising in one month and generated $5,000 in revenue, your return would be $5,000/$1,000, or a 5:1 ROAS ratio. A return on ad spend of 5:1 indicates that for every dollar you spend in advertising, you gain $5 in revenue.
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