Return on Ad Spend (ROAS) is how much revenue you receive for each $1 you spend. A positive ROAS means you're making more than you're spending.
To calculate ROAS, divide the amount returned by the amount invested.
Check your ROAS
Your Campaign Dashboard displays your ROAS when you set up your Conversion Audience. In order to know how much you're making back on your campaigns, we need to know:
- What a conversion looks like for you.
- How much a conversion is worth to you.
To define success, you will first need to set up your Conversion Audience.
As for giving each success a value, you can define a Fixed Value or use Enhanced Conversion Tracking to track order values dynamically.
A fixed value for each conversion means that each conversion is worth the same amount to you. If order values for your business do not change much from order to order, this is a good option.
To calculate how much revenue your campaign has generated (for fixed values), multiply the number of attributed conversions by your conversion value.
Enhanced Conversion Tracking
If you have an ecommerce store, order values will most likely differ. In this case, it's more accurate to use enhanced conversion tracking to dynamically capture your order values. Learn more here.