Glossary/Return on Ad Spend (ROAS)

Return on Ad Spend (ROAS)

The revenue generated for every dollar spent on advertising. Calculated as revenue ÷ ad spend. A ROAS of 3.0 means $3 revenue for every $1 spent.

Extended Definition

Return on Ad Spend (ROAS) measures advertising efficiency. While EPC tells you revenue per click, ROAS tells you revenue per dollar invested — accounting for the actual cost of acquiring those clicks.

ROAS = Total Revenue ÷ Total Ad Spend

Example: You spent $1,000 on Facebook ads and generated $3,500 in affiliate revenue → ROAS = 3.5x

ROAS vs ROI

  • ROAS = Revenue ÷ Ad Spend (doesn't account for other costs)
  • ROI = (Revenue - Total Costs) ÷ Total Costs × 100% (accounts for all costs including tools, labor)

Target ROAS Benchmarks

ScenarioTarget ROAS
Minimum viable1.0x (break even)
Healthy campaign2.0-3.0x
Strong campaign3.0-5.0x
Exceptional5.0x+

How GeoRedir Handles ROAS

Set your campaign cost on each smart link, and GeoRedir calculates ROI automatically using conversion revenue from postback URLs. When connected to Google Ads, GeoRedir sends conversion values back to Google for Target ROAS bidding optimization.

Related Terms

Earnings Per ClickConversion RateClick-Through Rate

Calculate ROAS automatically

Set your campaign cost, track conversions, and GeoRedir computes your ROI in real time.

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