ROAS means return on ad spend: the revenue attributed to a campaign divided by its media cost.

How is ROAS calculated?

ROAS = attributed incremental revenue ÷ media cost. For example, 8,000 euros of attributed revenue from 2,000 euros of media is a ROAS of 4.

What is the difference between ROAS and ROI?

ROAS compares revenue with media cost only. ROI compares profit with the total investment, including margins and other costs.

How is ROAS measured for in-store media?

By matching each anonymous shopper path with its ticket, comparing exposed trips with a non-exposed control group to get incremental sales per placement, and dividing them by the cost of that placement.

Retail Media

ROAS

ROAS (return on ad spend) is the revenue a campaign generates for every unit of currency spent on it. A ROAS of 4 means 4 euros of attributed revenue for every euro of media; in store it is calculated from incremental sales per placement.

Formula

ROAS = attributed incremental revenue ÷ media cost

What ROAS means

ROAS stands for return on ad spend. It divides the revenue attributed to a campaign by what the campaign cost, so advertisers can compare placements, channels and creatives on the same scale.

In store

With incremental sales measured per placement, ROAS can be reported for each screen, end cap and store, the same way advertisers read it online. Incremental sales come from comparing exposed trips with a non-exposed control group, so the result reflects the sales the placement caused rather than all the sales of the product.

ROAS and ROI

ROAS looks only at media cost and revenue. ROI also takes margins and other costs into account, so a campaign can have a healthy ROAS and still need a margin check before calling it profitable.

Frequently asked questions

What does ROAS mean?: ROAS means return on ad spend: the revenue attributed to a campaign divided by its media cost.
How is ROAS calculated?: ROAS = attributed incremental revenue ÷ media cost. For example, 8,000 euros of attributed revenue from 2,000 euros of media is a ROAS of 4.
What is the difference between ROAS and ROI?: ROAS compares revenue with media cost only. ROI compares profit with the total investment, including margins and other costs.
How is ROAS measured for in-store media?: By matching each anonymous shopper path with its ticket, comparing exposed trips with a non-exposed control group to get incremental sales per placement, and dividing them by the cost of that placement.