Return on Ad Spend.
The revenue generated for every dollar spent on advertising. Calculated as Revenue ÷ Ad Spend. The single most important metric for paid media performance.
The Formula
Example: $50,000 revenue from $10,000 ad spend = 5.0x ROAS
Benchmarks
ROAS by platform.
Google Ads
Meta Ads
LinkedIn Ads
By Industry
Target ROAS by sector.
E-commerce
Product-dependent
SaaS B2B
Higher LTV offsets CAC
Real Estate
High ticket value
F&B
Repeat purchase driven
Healthcare
Patient LTV matters
Insurance
Policy value varies
Education
Enrollment value
Professional Services
High-value clients
AI Advantage
How AI improves ROAS.
Smart Bidding
AI adjusts bids in real time based on conversion probability, time of day, device, location, and audience signals—far beyond what manual bidding can achieve.
Creative Optimisation
Machine learning tests thousands of ad creative combinations simultaneously, identifying top performers and reallocating budget automatically.
Audience Discovery
AI finds high-value audience segments you didn't know existed by analysing conversion patterns across your entire customer base.
Attribution Modelling
Multi-touch attribution powered by AI gives accurate credit to each touchpoint, so you know exactly which campaigns drive revenue.
Related Terms
Keep learning.
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