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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMeasurement & AttributionReturn on Ad Spend (ROAS)

Measurement & Attribution

Return on Ad Spend (ROAS)

Revenue generated for every dollar spent on advertising.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Return on ad spend (ROAS) is the revenue generated for every dollar spent on advertising, calculated as attributed revenue divided by ad cost. A ROAS of 4 means four dollars of revenue per dollar spent. It is widely used to compare campaigns, but it ignores margins and may credit ads for sales that would have happened anyway.