Return on Ad Spend (ROAS)

ROAS stands for Return on Ad Spend and measures the revenue generated for every rupee spent on advertising campaigns. It is calculated by the total revenue generated divided by the total advertising cost.

ROAS helps brands to evaluate campaign performance and improve budget allocation decisions across all channels, including comparing outdoor advertising costs against digital spends to identify the most cost-efficient mix. Brands use performance metrics to categorize their advertising channels, whether it's search, social, or OOH advertising. High ROAS indicates successful ad spending strategies while lower ROAS shows the need for improvement.