ROAS
Return on Ad Spend
In short
ROAS (return on ad spend) measures how much revenue every dollar spent on advertising brings in: revenue from ads divided by ad spend.
Also known as: return on advertising spend
ROAS (return on ad spend) shows how much revenue a campaign generates per dollar spent on ads. It is the key metric for comparing campaigns, channels and ads by their actual contribution to revenue.
Formula
ROAS = revenue from ads ÷ ad spend
A ROAS of 4 (often written as 400%) means every dollar of ad budget brought in 4 dollars of revenue.
Example
A Meta campaign costs $2,000 per month. It brings in 30 leads, which turn into 5 deals worth $12,000 in total.
ROAS = $12,000 ÷ $2,000 = 6
ROAS in lead generation
In lead generation, revenue is often made weeks after the click – in the CRM, not in the ad account. The ROAS shown by Meta or Google Ads is therefore usually based on estimated lead values, or missing entirely. You only get a reliable ROAS when deals and payments from your CRM or payment provider are attributed to the original campaign.
LeadMetrics connects CRM data such as HubSpot deals and payments from Stripe, CopeCart or Digistore24 with the campaign the lead came from, and calculates ROAS per channel, campaign and ad.
Break-even ROAS
Whether a ROAS is profitable depends on your margin. The break-even ROAS is the value at which your ads pay for themselves:
Break-even ROAS = 1 ÷ gross margin
Use the free ROI calculator to calculate ROAS and break-even for your numbers.
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Frequently asked questions
Guides on this topic
Measure Real ROAS in Lead Generation: From Click to Closed Deal
How to measure real ROAS in lead generation: attribute CRM revenue to campaigns, read CPL, CPA and ROAS correctly and send deal values back to Meta and others.
Read guideSocial Media KPIs for Lead Generation: Which Metrics Matter
The key social media metrics for lead campaigns on Meta, Instagram, TikTok and LinkedIn: from reach and CTR to cost per lead, cost per acquisition and ROAS.
Read guideArticles on this topic
- From CRM Lead to Real Conversion: No More Flying Blind in Performance MarketingHow CRM/AdSync makes the true value of your campaigns visible – and why it's the game-changer for data-driven growth.
- META Andromeda Update - Tracking ComplicationsMeta (formerly Facebook) has rolled out Andromeda, the largest update to its advertising algorithm to date – fundamentally changing how Facebook Ads and Instagram Ads are delivered. For all marketers, advertisers, and agencies, one thing is now clear: those who don't have conversion tracking under control will lose visibility, revenue, and scalability.
- Tracking without CAPI, Pixel Chaos, and Developer OverheadWhy modern marketers rely on Direct Track, one‑code tracking, and automatic form tracking
Related terms
All termsROI · Return on Investment
ROI (return on investment) measures the profit of an investment relative to its cost – in marketing: profit from campaigns divided by all costs.
Cost per Lead
Cost per lead (CPL) is the average amount you pay to acquire a single lead: ad spend divided by the number of leads generated.
Customer Acquisition Cost
Customer acquisition cost (CAC) is the total marketing and sales spend required, on average, to win one new customer – not just ad spend.
Customer Lifetime Value
Customer lifetime value (CLV) is the total revenue or contribution margin an average customer brings in over the entire business relationship.
Click-Through Rate
Click-through rate (CTR) is the percentage of people who see an ad and then click on it, calculated as clicks divided by impressions.
Conversion Rate
Conversion rate is the percentage of visitors or leads who complete a desired action, such as submitting a form or making a purchase.