---
title: Return on Advertising Spend (ROAS)
description: Stands for 'Return on Advertising Spend' and is used to determine media effectiveness. It is the amount of revenue generated for every dollar spent on advertising. For instance, a ROAS of $1 means you
---

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# Return on Advertising Spend (ROAS)

Stands for 'Return on Advertising Spend' and is used to determine media effectiveness. It is the amount of revenue generated for every dollar spent on advertising. For instance, a ROAS of $1 means you're generating $1 in sales for every $1 in advertising spend, and a ROAS of $5 means you generate $5 in sales for every $1 in advertising spend. 

This can also be represented as 5:1 or 16:1 meaning that for every $1.00 spent you get a return of $5.00 or $16.00.

**To learn more about ROAS visit our comprehensive [blog post](https://blog.commissionfactory.com/ecommerce-marketing/what-is-roas-calculating-return-on-ad-spend).**

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