Paid Ads
ROAS (Return on Ad Spend)
The revenue you earn for every unit of currency spent on advertising.
Definition
ROAS measures how much revenue an advertising campaign generates relative to its cost. It's the headline efficiency metric for paid media, but on its own it ignores profit margin, which is why you should always compare it to your break-even ROAS.
Formula
ROAS = Revenue from ads ÷ Ad spend
Example
If you spend AED 10,000 on Meta ads and generate AED 40,000 in sales, your ROAS is 4x. But if your product margin is only 20%, you'd need a 5x ROAS just to break even.