KnowledgeReturn on Ad Spend
ROAS · How much conversion value the ad platform attributes to each unit of advertising spend. A ROAS of 4 means 4 units of attributed value for every 1 spent.
Understand ROAS in context.
Simply explained explanation
How much conversion value the ad platform attributes to each unit of advertising spend. A ROAS of 4 means 4 units of attributed value for every 1 spent.
Professional explanation
ROAS compares attributed conversion value with media cost. It is a useful bidding and allocation KPI, but it is not a profit margin or an incremental return.
Analytical explanation
Decompose changes into spend, eligible traffic, conversion rate and conversion value per conversion. Compare like-for-like attribution windows, conversion goals and reporting dates before judging a campaign.
Technical explanation
Google Ads column “Conv. value / cost” = conversion value ÷ cost. API implementations must convert metrics.cost_micros to standard currency units. A result of 4 is 400% when displayed as a percentage.
Four complementary explanations — choose your level. Technical definitions are platform-specific where noted.
↗ How to use it
Segment by brand vs non-brand, new vs returning customers and margin.
⚠ Common interpretation mistake
A high platform ROAS does not prove positive profit or incremental sales.
Metric calculator
Adjust the inputs to see how the metric is calculated.