Glossary
ROAS (Return On Ad Spend)
Revenue generated divided by advertising spend.
Return on ad spend (ROAS) is revenue generated divided by ad spend, usually expressed as a percentage for a fixed window after install — for example D7 ROAS or D30 ROAS.
ROAS is the most business-aligned goal for apps with measurable revenue, such as games, subscriptions and commerce. ROAS-optimized campaigns bid more for users predicted to spend more, rather than treating all installs equally. They need enough revenue events to learn from, so many teams start with CPI or CPA and move to ROAS once data accumulates. Target ROAS levels depend on how revenue grows beyond the measurement window.
Because revenue arrives over time, ROAS should always be quoted with its window, and compared like for like. D7 ROAS of one campaign is not comparable with D30 ROAS of another. Many teams model how D7 ROAS translates into D30 or D90 for their app, and set D7 targets accordingly so that campaigns can be judged quickly without waiting months.
Learn more about mobile user acquisition
Related Content
Next Step
Want to see these metrics on your own campaigns? Book a demo of Adora X.
