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What is ROAS?
Return on Ad Spend — revenue generated per unit of currency spent on advertising.
Detailed Explanation
ROAS (Return on Ad Spend) measures the revenue earned for every rupee spent on advertising. It is the inverse of ACOS: ROAS = Ad Revenue ÷ Ad Spend. A ROAS of 5x means you earn ₹5 for every ₹1 spent on ads. While ACOS is expressed as a percentage, ROAS is expressed as a ratio. Most Amazon sellers target a ROAS between 3x-8x depending on their margin structure. ROAS is particularly useful for comparing performance across different advertising platforms (Amazon Ads, Google Ads, Meta Ads) since it's a universally understood metric.