Revenue attributed to advertising divided by ad spend.
Definition
Revenue attributed to advertising divided by ad spend.
Why it matters
It shows how efficiently ads generate revenue.
How it works
ROAS = ad revenue ÷ ad spend
Example
₹1,50,000 revenue from ₹30,000 spend is a ROAS of 5.
Common mistake
Judging ROAS without considering margins.
Using it in practice
Review ROAS alongside related metrics rather than in isolation, and agree definitions across your team so reports stay consistent.
Need help putting this into practice?
Gravmo's team can plan and run this for you. See Performance Marketing or message us on WhatsApp.
Ask on WhatsAppFrequently asked questions
Is ROAS the most important metric?
No single metric tells the whole story; use it with business outcomes.
How often should we review ROAS?
Monthly for most businesses, weekly during active campaigns.
