What does ROAS stand for?

• A. Revenue on Ad Spend
• B. Ratio of Ad Spend to Revenue
• C. Return on Ad Spend
• D. Return on Advertising Spend

Answer: (C)

Return on Ad Spend shows how much revenue you get for each dollar you put toward ads. It’s calculated by dividing the revenue attributed to advertising by the amount spent on those ads, giving a multiple like 3x or 5x. This naming is the standard in digital marketing, so the phrase Return on Ad Spend exactly matches the common metric used to gauge ad efficiency. The other phrasings either invert the relationship (revenue to spend rather than spend to revenue), use a nonstandard term (Advertising Spend instead of Ad Spend), or describe a different ratio altogether. For example, spending $1,000 and generating $4,000 in ad-attributed revenue yields a ROAS of 4x (or 400%), showing how effectively the ad spend converted into revenue. Remember, ROAS focuses on revenue relative to ad spend, not net profit after all costs.