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PPCUpdated Nov 6, 2026

What is Return on Ad Spend (ROAS)?

Definition

Return on ad spend divides the revenue attributed to ads by what those ads cost.

Also known as:ROAS

Check the margin

A 4x ROAS can still lose money if margins are thin or refunds are high. Agree on a target using real profit figures, and remember that attribution rarely captures every sale.

This is part of our work on PPC management.

Related glossary terms

Cost Per Click (CPC)Cost per click is the amount an advertiser pays when someone clicks an ad. It varies by keyword, competition, location and ad quality.UTM ParametersUTM parameters are tags added to a URL that tell analytics tools where a visit came from.
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