Which metric assesses revenue relative to advertising spend in digital campaigns?

Which metric assesses revenue relative to advertising spend in digital campaigns?

• A. ROAS (Return on Ad Spend)
• B. ROI
• C. CPA
• D. CPC

Answer: (A)

Measuring how much revenue an ad dollar brings in focuses on efficiency of ad spend. Return on Ad Spend expresses how many dollars of revenue you generate for every dollar spent on advertising, usually calculated as Revenue divided by Ad Spend. This direct link to ad spending makes it the best choice for evaluating digital campaigns. For example, a ROAS of 5 means $5 in revenue for every $1 spent. In contrast, ROI looks at overall profitability including other costs, CPA is the cost to acquire a customer, and CPC is the price paid per click—neither directly captures revenue per ad dollar. So, ROAS is the metric that matches revenue relative to advertising spend.

Measuring how much revenue an ad dollar brings in focuses on efficiency of ad spend. Return on Ad Spend expresses how many dollars of revenue you generate for every dollar spent on advertising, usually calculated as Revenue divided by Ad Spend. This direct link to ad spending makes it the best choice for evaluating digital campaigns. For example, a ROAS of 5 means $5 in revenue for every $1 spent. In contrast, ROI looks at overall profitability including other costs, CPA is the cost to acquire a customer, and CPC is the price paid per click—neither directly captures revenue per ad dollar. So, ROAS is the metric that matches revenue relative to advertising spend.