2 min read
ROAS = revenue attributed to ads ÷ ad spend. 4x is a common target, but the level you need depends on your margin.
How to use it
Enter the revenue you can attribute to a campaign and what you spent on it. ROAS is the multiple you got back — £4 of revenue for every £1 spent is a 4x ROAS.
ROAS measures revenue, not profit, so the target you need depends on your gross margin: a low-margin business needs a much higher ROAS to actually make money. Pair it with your margin to see whether a campaign truly pays.
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Frequently asked questions
What ROAS should I aim for?
A rule of thumb is 4x, but it's really a function of margin. If your gross margin is 25%, a 4x ROAS only just breaks even after cost of goods. Work back from your margin to set a real target.
ROAS or ROI?
ROAS is revenue ÷ spend; marketing ROI is profit ÷ spend as a percentage. ROAS is quick for comparing campaigns; ROI tells you whether you actually made money. Use both.
Is this a quote?
No — it's a free illustration. Your actual Credicorp offer depends on an assessment of your company.
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