ROAS is calculated as?

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Prepare for the WGU MKTG 6040 D381 E-Commerce and Marketing Analytics Exam. Use flashcards and multiple choice questions with hints and explanations. Ensure your success on this crucial exam!

Multiple Choice

ROAS is calculated as?

Explanation:
ROAS measures how much revenue is generated for each dollar spent on advertising. It’s a ratio that shows the efficiency of ad spend by dividing the revenue earned from the campaign by the amount spent on that campaign. For example, a ROAS of 4x means you earned $4 for every $1 spent, or 400% if you prefer percent terms. The other options don’t capture this efficiency: subtracting ad spend from revenue gives profit, not a spend-to-revenue ratio; dividing ad spend by revenue is the inverse of ROAS; and counting how many ads were served per revenue doesn’t reflect how effectively spend converts to revenue.

ROAS measures how much revenue is generated for each dollar spent on advertising. It’s a ratio that shows the efficiency of ad spend by dividing the revenue earned from the campaign by the amount spent on that campaign. For example, a ROAS of 4x means you earned $4 for every $1 spent, or 400% if you prefer percent terms. The other options don’t capture this efficiency: subtracting ad spend from revenue gives profit, not a spend-to-revenue ratio; dividing ad spend by revenue is the inverse of ROAS; and counting how many ads were served per revenue doesn’t reflect how effectively spend converts to revenue.

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