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Formula Used:
RO𝐴𝑆 = Revenue / Ad Spend
Calculated Result:
Example: “Your ROAS is 4.5x” or “Your ROAS is 450%.”
Interpretation:
If ROAS = 4.5x, it means: “For every $1 you spent on ads, you earned $4.50 in revenue.”
If ROAS = 1x, it means: “You broke even – you earned back exactly what you spent on ads.”
If ROAS < 1x, it means: “Your ad spend exceeded your revenue, resulting in a loss.”
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