Return on Ad Spend (ROAS) is the metric that measures the performance of paid advertising initiatives. It compares the revenue driven by ads to the cost of running those ads, which is often part of your Customer Acquisition Cost (CAC) and influenced by your Website Conversion Rate.

Recommended benchmark: 4:1, which you can evaluate using Abacum’s ROI calculator in the context of your Return on Investment (ROI).

ROAS = Revenue Attributed to Ad Campaign / Cost of Campaign

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