Return on Ad spent is an important metric in Google Adwords. Many advertisers are using the benefits of ROAS. It will answer for our questions like, If I put [ ‘ y’ amount of money] on my ad, How much amount will I get back out??
What is ROAS?:
ROAS( Return on Ad spent) is a measurement of how much amount you will be receiving for every amount you spend on advertising. It is automatic bidding strategy, So it automatically adjusts the bids In order to select ROAS your campaign must have at least 20 conversions in 45 days, But we recommend you must have at least 50 conversions in 30 days. You will need to set the values for conversions
ROAS is an incredibly flexible way to evaluate any aspect of your online marketing. Want to know if a particular ad set is worth your time and money? Check your ROAS. Want to know if those targeting changes you made are working? Check your ROAS. It will give you complete information about each and every campaign, and which campaign leads to generate more revenue
ROAS Formulae :
ROAS = Revenue / Ad spent * 100
Let us say you spent 15$ on an ad and in return, you got a revenue around 120$ then your ROAS would be 120$/15$*100$= 800$
Learn more about ROI(Return on investements) Vs ROAS