Measurement & strategy · Common term

Return on ad spend

What is return on ad spend?

Revenue attributed to advertising divided by advertising spend.

Return on ad spend: an illustrative example

A high reported ROAS may exclude returns and organic sales.

Sources and related reading

This is a practical common term. Examples illustrate the concept; they are not verified client results. Working definitions and accountability lenses are not claims of a universal standard or original coinage.

  • A/B testing

    Comparing two versions by randomly assigning participants and measuring a predefined outcome.

  • Accountable owner

    The person responsible for carrying an agreed outcome through delivery.

  • Attribution

    Assigning credit for an outcome to observed touchpoints using a stated rule or model.

  • Baseline

    The starting reference against which change is assessed.

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