ROAS (return on ad spend)

ROAS is the revenue attributed to your ads divided by your ad spend. A ROAS of 4 means every 1 SAR of spend brought 4 SAR of revenue. It is often shown as a ratio (4) or as a percentage (400%). Google also offers Target ROAS bidding.

Example: 1,000 SAR of spend and 3,500 SAR of revenue give a ROAS of 3.5. To know if that is profitable, compare it with your break-even ROAS, which is 1 divided by your profit margin: with a 40% margin you break even at a ROAS of 2.5.