Return On Ad Spend (ROAS) is a revenue based metric which is used to evaluate the efficacy of online advertising campaign.
Hiox spent $20,000 on paid search in November, and generated $60,000 in revenue. Find the ROAS value of the company ?
Revenue value = $60,000 Ad spend value = $20,000
Substitute the values in the formula,
|ROAS||= (Revenue value - Ad spend value) /Ad spend value|
|= ($60000 - $20000) / $20000|