Paid Media
ROAS (Return on Ad Spend)
Quick definition
Revenue generated divided by ad spend. A 4x ROAS means $4 in revenue for every $1 spent.
What it actually means
ROAS is revenue divided by ad spend, the headline paid-media metric. It is incomplete on its own. Healthy ROAS depends on margin, and the number shifts with the attribution model. Last-click ROAS in Meta Ads Manager can over-credit paid versus incrementality-tested ROAS. Many operators also watch MER, total revenue divided by total marketing spend, or contribution margin instead of platform-reported ROAS.
Related terms
MER (Marketing Efficiency Ratio)
Total revenue divided by total marketing spend across all channels. The cleanest profitability proxy at the business level.
CAPI (Meta Conversions API)
Server-side event tracking from your store to Meta, replacing browser pixel events lost to iOS privacy changes and ad blockers.
CAC (Customer Acquisition Cost)
Total marketing spend divided by new customers acquired in the same period.