What Is ROAS?

ROAS (Return On Ad Spend) is revenue generated divided by ad spend, usually expressed as a ratio or percentage - a 4x ROAS means every ₹1 spent produced ₹4 in revenue.

It's a useful headline metric, but an incomplete one on its own: a 4x ROAS on a low-margin product can lose money, while a 2x ROAS on a high-margin product can be highly profitable. ROAS should always be read alongside gross margin, not instead of it.

For Shopping and e-commerce campaigns especially, we set bidding targets around a margin-adjusted ROAS goal - segmenting products by margin tier first - rather than optimising every product line to the same blanket ROAS target.