ROAS

What ROAS is

Return on ad spend (ROAS) is the ratio of revenue attributable to a campaign to what the campaign cost: revenue divided by spend. A campaign that cost 10,000 € and drove 40,000 € in tracked sales has a ROAS of 4 (often written 4:1 or 400 %). In influencer marketing, "spend" should include creator fees, usage-rights surcharges and paid amplification — not just media budget — or the number flatters the channel.

ROAS is not ROI

ROAS is a revenue ratio; it ignores margins and every cost beyond the campaign. ROI relates profit to investment. The bridge between the two is the break-even ROAS: one divided by the contribution margin. A shop with a 50 % margin breaks even at ROAS 2.0; below that, a "positive" ROAS still loses money. Agencies that state a client's break-even ROAS in reporting immediately look more competent than those celebrating any number above 1.

The attribution problem

ROAS is only as good as the revenue attribution behind it, and influencer campaigns are hard to attribute:

State the attribution method next to every ROAS figure; a promo-code ROAS and a modeled ROAS are different quantities.

In agency practice

ROAS is the currency of performance-oriented brand conversations, especially in e-commerce. Practical habits that keep it honest: agree the measurement method before the campaign starts, load all costs into the denominator, report break-even alongside actuals, and resist comparing ROAS across channels with different attribution quality. For awareness-led campaigns, be candid that ROAS is the wrong primary metric and anchor on reach, CPM and engagement instead — a clearly framed metric mix beats a shaky revenue claim every time.