Return on ad spend (ROAS)
Return on ad spend, or ROAS for short, is a marketing metric that helps you understand how effective your marketing campaigns really are by measuring revenue resulting from advertising spend.
What is ROAS?
ROAS is basically ROI (return on investment) but for mobile advertising and it is most often expressed as a ratio.
For example, say you run a paid campaign for $100 and it ends up generating $1,000 in revenues – your ROAS would be 10:1. That means for every $1 dollar you spend, you’ll get $10 back!
Measuring the bottom line of ad campaigns
As we mentioned above, there is ROI in the global sense which measures an organization’s overall profits after expenses and ROI in the specific context of mobile marketing (aka ROAS).
ROI is the most critical metric for app advertisers.
Your attribution provider’s dashboard should show you your LTV (lifetime value) KPI (key performance indicator) in relation to your media costs. It is important for your attribution provider to offer robust LTV measurement capabilities and cost integrations with a large number of media sources.