How Does ROAS Work?
ROAS compares advertising revenue with advertising spend. A higher ROAS means your campaign is generating more revenue relative to the amount being spent on ads.
For example, if you spend ₹10,000 on advertising and generate ₹40,000 in attributed revenue, your ROAS is 4.00x. This means your campaign generated ₹4 in revenue for every ₹1 spent on advertising.
However, ROAS measures advertising revenue efficiency, not overall business profit. Product costs, fulfilment, payment fees, discounts, overheads and other expenses also affect whether a campaign is actually profitable.