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GlossaryMay 15, 20262 min read

Return on Ad Spend (ROAS)

Learn ROAS calculation. Break-even is 2-3x, profitable is 4x+. LinkedIn delivers 113% B2B ROAS vs Google 78%.

By The Ad Spend
A meeting room with a colleague sipping coffee.

Revenue generated for every dollar spent on advertising. The primary efficiency metric for e-commerce and performance campaigns.

Formula

Revenue ÷ Ad Spend

Benchmark range

Break-even: 2-3x (depends on margins). Profitable: 4x+. LinkedIn B2B: 113%. Google Search B2B: 78%. Meta B2B: 29%.

Why it matters

ROAS varies by margin structure—10x ROAS on 10% margins equals 2x ROAS on 50% margins in actual profit. Platform-reported ROAS often inflates results by 20-50%; validate against backend revenue. Meta whistleblower alleged artificially inflated Shops ROAS in August 2025.

Where it applies

  • Google Ads
  • Meta Ads
  • Amazon Ads
  • TikTok Ads
  • Shopify

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