ROAS — Return on Ad Spend

Definition

Revenue attributed to ads divided by ad spend. The horizon matters enormously.

Formula

ROAS = Attributed revenue / Ad spend

Worked Example

$4,000 spend, 55 customers acquired, ARPU $42, CLTV $1,260:

First-month ROAS: (55 x $42) / $4,000 = 0.58x   <- looks terrible
LTV-based ROAS: (55 x $1,260) / $4,000 = 17.3x  <- looks great

Interpretation & Pitfalls

Always state the horizon. First-month ROAS punishes subscriptions; LTV-ROAS depends on churn assumptions holding. Report both.

In TupicFinance

Campaign spend joined to attributed revenue events supports both horizons.