What is this? ROAS (Return on Ad Spend) is the revenue you generate for every dollar spent on advertising. But ROAS isn't profit — you also need to subtract your cost of goods/services. If your ROAS is 4:1 but your margin is 30%, you're breaking even at best.
Benchmarks by platform: Google Search: 3-5:1. Facebook/Instagram: 2-3:1. Display ads: 1-2:1. Email: 5-10:1.
The key formula: True ROI = (Revenue - Ad Spend - COGS) / Ad Spend. A campaign with 3:1 ROAS at 70% margin = 140% ROI. Same ROAS at 20% margin = only 20% ROI.
Ad Performance
ROI Analysis
Revenue Generated
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Gross Profit
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Net ROI
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Cost Per Acquisition
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Break-Even ROAS
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Platform Benchmark
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Estimates based on inputs. Actual ROAS varies by targeting, seasonality, competition, and conversion rates.