Meta Ads Management Term
ROAS (Return on Ad Spend)
ROAS measures revenue generated for every pound spent on ads. A ROAS of 4x means you made £4 for every £1 spent. Unlike ROI, ROAS only accounts for ad spend, not other costs like product, fulfillment, or overhead.
Example in Practice
"Our Meta Ads achieved a 5.2x ROAS last month, but after accounting for 40% gross margin, our true profit contribution was £12,500."
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