What does ROAS mean?

ROAS stands for Return on Ad Spend. It expresses how much revenue an advertising campaign generated relative to the amount invested in it. It is calculated as ad revenue divided by ad costs. For example, if a company spends CZK 10,000 on a campaign and gets CZK 50,000 in revenue from it, the ROAS is 5, or 500%. A higher ROAS usually means more efficient use of the ad budget, but on its own it doesn't tell you whether the campaign is actually profitable. When evaluating it, it is therefore important to also consider margin, operating costs and other sales-related expenses.