What does a ROAS of 2:1 imply?

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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

What does a ROAS of 2:1 imply?

Explanation:
ROAS shows how much revenue you earn for each dollar spent on advertising. A 2:1 ROAS means revenue divided by ad spend equals 2, so for every dollar spent, you generate two dollars in revenue. In other words, revenue is twice the ad spend. For example, spending $100 on ads would yield about $200 in revenue. The other options describe different ratios: 1:1 would mean revenue equals ad spend; 1:2 would mean revenue is half the ad spend; 4:1 would mean revenue is four times the ad spend.

ROAS shows how much revenue you earn for each dollar spent on advertising. A 2:1 ROAS means revenue divided by ad spend equals 2, so for every dollar spent, you generate two dollars in revenue. In other words, revenue is twice the ad spend. For example, spending $100 on ads would yield about $200 in revenue. The other options describe different ratios: 1:1 would mean revenue equals ad spend; 1:2 would mean revenue is half the ad spend; 4:1 would mean revenue is four times the ad spend.

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