Return On Advertising / Ad Spend
Online business calculator which helps to calculate the return on advertising spend (ROAS)rate from revenue and ad spend value.
Calculator of Return On Advertising / Ad Spend
Formula of Return On Advertising / Ad Spend
ROAS = (Revenue value – Ad spend value) /Ad spend value
Where,
- ROAS – Return on Ad Spend
Example of Return On Advertising / Ad Spend
Hiox spent $20,000 on paid search in November, and generated $60,000 in revenue. Find the ROAS value of the company ?
Given,
- Revenue value = $60,000
- Ad spend value = $20,000
Solution:
Substitute the values in the formula,
| ROAS | = (Revenue value – Ad spend value) /Ad spend value |
| = ($60000 – $20000) / $20000 | |
| = $2 |
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