What is ROAS (return on ad spend)?

ROAS or return on ad spend is an important revenue-based mobile app KPI. It measures the effectiveness of app advertising campaigns by measuring the revenue generated for each dollar spent on advertising. 

How to calculate ROAS?

To calculate ROAS, divide the amount of revenue generated by a certain ad campaign by the cost of that ad campaign.

roas formula

Let’s say an ad campaign brought in $6,000 after spending $1,200 on ads. That’s a $4,800 profit or a 400% return on investment. Put simply, for every dollar spent on advertising, four dollars were earned in revenue.

How to boost Return on Ad Spend?

To increase your Return on Ad Spend, consider using engaging ad formats like rewarded video ads, offerwall ads, and playable ads. Check out how a mobile gaming studio achieved a 170% ROAS via offerwall advertising.