Back to library
Google Ads
Metrics & Measurement

What is ROAS?

ROAS stands for Return on Ad Spend. Formula: Revenue ÷ Advertising Spend Example: Revenue: $50,000 Ad Spend: $10,000 ROAS = 5× This means every advertising dollar generated five dollars in revenue. E-commerce businesses commonly optimize toward ROAS, while lead generation businesses often focus on Customer Acquisition Cost instead.
Go deeper

Want the full playbook? Read Beginner’s Guide to Google Ads Numbers That Matter in 2026 — Learn the Google Ads metrics and KPIs that actually guide better decisions, from impressions and CTR to CPA, ROAS, Quality Score, and impression share.