Understanding Return on Ad Spend (ROAS)
Let's say you have a campaign with a $1,000 budget on Vantage. That means $870 of ad spend.
Assuming you get the average return, you'll have a 10X return on ad spend (ROAS).
Here's how we calculate that.
Revenue = Gross sales that were attributed to the campaign
Ad Spend = Amount spent on ads
Return on Ad Spend = Revenue / Ad Spend
Return on Ad Spend = $8,700 / $870
Return on Ad Spend = 10X
Calculating ROAS is essential to understanding the success of your social ad campaigns. Once ads are optimized you should always be getting more than you put in!