Glossary
What is ROAS (Return on Ad Spend)?
The revenue earned for each rupee spent on advertising, usually written as a ratio.
In plain words
ROAS is the revenue from ads divided by their cost. It does not include other costs such as products, fees or staff, so a strong ROAS can still lose money. Agree what is counted before the work begins.
Where it goes wrong
Platform-reported ROAS can overstate results, because several platforms may claim the same sale. Ask how results are checked against your own sales.
Questions to ask a company that offers this
- How do you calculate ROAS, and what is included?
- How will you check it against my actual sales?
A good company will answer these plainly and in writing. Vague or evasive answers are worth noting.
Related terms
Find companies
Explanation last read through on 25 October 2026. It is general guidance in plain language, not advice for your particular project. Tell us if something is wrong or unclear.