ROAS measures revenue generated per dollar of advertising spend. Learn how ROAS decomposes in a marketing KPI tree.
Return on Ad Spend (ROAS) is Revenue Attributed to Ads ÷ Ad Spend, usually expressed as a multiple (e.g. 4.0x). In a marketing KPI tree, ROAS decomposes into the funnel chain: ROAS = (Impressions × CTR × Conversion Rate × AOV) ÷ Ad Spend. This decomposition is why dashboard-only ROAS reporting hides the real driver of changes; a KPI tree exposes whether the swing came from CPM, click-through, conversion, or basket size.