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Demand Gen & PaidMarketing Glossary

Return on Ad Spend (ROAS)

ROAS measures the revenue generated per dollar of advertising spend. Formula: Revenue from Ads ÷ Ad Spend. A ROAS of 4 means you get $4 back for every $1 spent. ROAS is most meaningful for e-commerce and direct-response campaigns where revenue is directly attributable. For B2B SaaS with long sales cycles, ROAS is harder to calculate but you can track pipeline-influenced ROAS or pipeline per dollar spent.

Real-World Example

For example, if you spend $10,000 on Facebook ads and directly attribute $40,000 in revenue to those campaigns, your ROAS is 4x — but in B2B, be careful that you're attributing revenue correctly across a multi-month sales cycle.

At Cactus

We track ROAS across paid channels for clients and help build attribution models that account for B2B's multi-touch, long-cycle reality.

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We implement Return on Ad Spend (ROAS) strategies for B2B tech startups every day. Book a free 30-minute call to get a concrete plan for your situation.

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