Return On Ad Spend is a digital advertising metric used to measure the effectiveness of a campaign by looking at how much customers spend.

Rather than only looking at how many conversions an advertising campaign has generated, ROAS also gives you information on how much revenue those customers have generated.

To get ROAS, divide advertising spend by the revenue created from the customers that came in from an ad or campaign.

For example, a company spends $2,000 on an advertising campaign in a month, and the campaign delivers revenue of $10,000. Therefore, the ROAS is a ratio of 5 to 1 (or 500%) as $10,000 divided by $2,000 = $5.

Revenue: $10,000

___________________ ROAS = 500%

Cost: $2000

In other words, for every dollar spent on advertising, the campaign generates $5 worth of revenue.

In Match2One, ROAS (Return On Ad Spend) optimised campaign will help you find the most valuable customers by optimising towards customers that give you the highest revenue.

While setting a ROAS goal for your campaign, you'll also need to provide an average order value for the products you're advertising. In the table below, we're presenting our recommendations for the ROAS goal value depending on the campaign model you're planning to run.

Note: To be able to run the ROAS campaign, you need to install conversion pixel with order value.