ROAS (Return on Ad Spend)
The revenue generated for every dollar spent on advertising. Calculated as Ad Revenue ÷ Ad Spend. The inverse of ACoS.
What Is ROAS?
ROAS stands for Return on Ad Spend. It tells you how many dollars of revenue you earn for every dollar spent on ads. A ROAS of 4 means you earn $4 for every $1 spent.
ROAS vs ACoS
ROAS and ACoS are mathematically inverse: ROAS = 1 ÷ ACoS. An ACoS of 25% equals a ROAS of 4x. Some sellers prefer ROAS because higher numbers feel more intuitive - a higher ROAS is better, while a lower ACoS is better.
What Is a Good ROAS?
For most Amazon sellers, a ROAS of 3x to 5x is healthy. Below 2x typically means your ads are unprofitable after accounting for product costs and Amazon fees.
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