ROAS, or Return on Ad Spend, is a key performance metric that shows how much revenue you earn for every dollar spent on advertising. This helps marketers to ensure the direct effectiveness of paid campaigns. A higher ROAS return on ad spend means that your ads are generating more revenue relative to cost. Whether you are running paid search, social ads, or display campaigns, understanding your ROAS marketing numbers is essential for making budget decisions and optimizing performance.
To calculate return on ad spend, use the ROAS formula:
ROAS = Revenue Generated from Ads ÷ Cost of Ads
The total can either be displayed as a ratio or a percentage calculated by multiplying the total by 100. For example, if you earned $5,000 on a campaign that cost $1,000, your return on ad spend is 5, or 5:1, or 500%. This means you earned $5 for every $1 spent.
ROAS focuses specifically on the revenue generated from ad spend alone, while ROI (Return on Investment) considers total profit after all costs, including overhead and operations. In short, ROAS marketing is a campaign-level metric, and ROI is a broader financial measure. Both are valuable, but used for different strategic purposes.
Working with The Influence Agency to help launch our TikTok and Pinterest ad campaign strategies over the last 9 months was one of the best decisions we've made this year. We searched across Canada for an agency to align with our vision and marketing needs and found that their offerings and ratings were second to none. It's been a dream to work with both the team who were not only terrific and quick communicators (even with the time difference!), but also very professional and knowledgeable - clear experts in their field. We've been happy with our results and would recommend TIA!
Natasha Eng
Director, Social Media and Marketing
If you're looking for experts in the digital space, you HAVE to team up with The Influence Agency. We've been leveraging their expertise for over 12 years, and couldn't be happier to have them on our side. They take pride in what they do, and have put together an incredibly versatile team that can take care of all of the digital services we require. Highly, highly recommend our friends at TIA.
Vito Mastrorillo:
President
At Universal Music, we are frequently tasked with launching new albums and products with little to no notice which can prove challenging for traditional agencies.
The team at the Influence Agency have proven time and time again their ability to be both nimble and efficient at delivering influencer campaigns that are strategically targeted, creative and most importantly impactful with our artists audiences.
Fraser MacKenzie
Senior Director Digital
We have been working with TIA for 2+ years here at Staples and it's been an absolutely wonderful experience. They bring great energy and knowledge to the table and we have seen a great impact on our social channels ever since they took on our account. Cannot recommend enough!
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Guneet Benipal
Manager, Social Media Content
The Influence Agency is phenomenal. They’re incredible outside-the-box thinkers and we’re a great alternative to the traditional marketing efforts taken for the NFP I work for. We worked directly with Stephanie and Tom, both who had a high level understanding of the industry and a completely professional approach to social promotion. Looking forward to working with their team again!
Nicki Lamont
Global Digital Lead
The Influence Agency put on one of my favorite events ever for the launch of youtheory in Canada! The vibe was unmatched, with staff and creators enjoying themselves equally on the rooftop. It was also very diverse - both men and women were in attendance, which is rare since these events are usually female-dominated. They also didn’t forget us mature creators! It was refreshing to be part of a launch that values my age group. Thank you so much for the invite, TIA! More brands should take a page out of your book.
LaToya Ingleton
Wow – what an event! We are still buzzing over here. It was truly a memorable evening. The attention to detail was particularly impressive. Every element, from the décor, the drink menu names, the photo booth, the signage, etc., was meticulously planned and executed. It’s clear there was a lot of thought and care into making the event special.
We appreciate all the hard work that went into making our new line's launch party successful.
Colleen Roberts
Manager, Media, Global Marketing
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