Return on Ad Spend (ROAS) 

Definition:
ROAS measures the revenue generated for every dollar spent on advertising.

Formula:
ROAS = (Revenue from Ads / Ad Spend)

Why it matters:
It’s one of the most important metrics for measuring profitability. A ROAS above 1.0 indicates positive returns; below 1.0 means you're spending more than you earn.

Best practices:

• Track ROAS by campaign, channel, and device

• Compare against customer lifetime value (LTV)

• Optimize ad delivery and targeting based on top-performing segments