ROAS shows how much revenue your advertising produced for each dollar spent.

Is ROAS based on revenue or profit

ROAS uses revenue. Profit related analysis belongs to ROI and profit margin metrics.

Should ROAS be high or low

Higher is better. A value above 1 or above 100 percent means your ads are profitable.

Target ROAS is a bidding strategy where you set the revenue amount you want for every dollar spent. It is common in automated bidding systems when you have enough conversion data.

How long does it take to measure ROAS

Some products show early revenue signals within hours. Others require days or months depending on conversion cycles and lifetime value patterns.

Return On Advertising Spend (ROAS)

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