Return on Ad Spend (ROAS)
Also known as: ROAS
Return on ad spend (ROAS) is the revenue generated for every dollar of advertising spent, calculated as revenue attributed to ads divided by ad cost.
ROAS measures advertising efficiency: $5 of revenue from $1 of spend is a 5:1 ROAS. It is the headline number marketers use to judge whether a campaign is worth the money.
For any business where the phone closes deals, accurate ROAS is impossible without call attribution: the calls a campaign produces are part of its revenue. Pair ROAS with cost per lead and customer acquisition cost for the full efficiency picture.
Frequently asked questions
How do phone calls affect ROAS?
If calls drive revenue but aren't attributed, the revenue side of the ROAS equation is understated and your ads look less profitable than they are. Crediting call-driven revenue gives a true ROAS and prevents you from cutting campaigns that actually pay off.
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