Divide revenue by ad spend for ROAS.
ROAS (Return on Ad Spend) measures how much revenue each real of advertising generates. A ROAS of 5x means every R$ 1 spent on ads brought R$ 5 in revenue.
Unlike ROI, ROAS only looks at top-line revenue — it does not subtract product costs, shipping or returns. A high ROAS with thin margins can still mean a loss, so always check the net profit alongside it.
Most e-commerce businesses target a ROAS of 3x to 5x as healthy. The right target depends on your margins: a 70%-margin SaaS product can be profitable at 2x, while a 20%-margin retail product may need 5x or more.
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