> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sourcemedium.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Return on Ad Spend (ROAS)

> How to calculate, interpret, and analyze return on ad spend across channels using SourceMedium data

Use this guide to understand **Return on Ad Spend (ROAS)** at global, channel, and campaign levels using SourceMedium data.

## What is ROAS?

ROAS measures the revenue generated for every dollar spent on advertising:

```
ROAS = Revenue / Ad Spend
```

A ROAS of 3.0 means you earned $3 in revenue for every $1 spent on ads.

## Where to find ROAS in SourceMedium

### Executive Summary

The [Executive Summary module](/data-activation/managed-bi-v1/modules/executive-summary-module) shows global ROAS across all paid channels.

### Marketing Overview

The [Marketing Overview module](/data-activation/managed-bi-v1/modules/marketing-overview-module) breaks down ROAS by channel (Meta, Google, TikTok, etc.).

### Ad Performance table

For granular analysis, use [`rpt_ad_performance_daily`](/data-activation/data-tables/sm_transformed_v2/rpt_ad_performance_daily):

* `ad_spend` — Total spend
* `ad_platform_reported_revenue` — Revenue attributed to ads (as reported by the ad platform)
* Calculate: `ad_platform_reported_revenue / ad_spend`

## ROAS by attribution model

You’ll see ROAS reflected in a few different ways depending on the view you’re using:

* **Platform-reported ROAS:** best for reconciling to Meta/Google/TikTok reporting, using `rpt_ad_performance_daily` (spend and platform-reported revenue).
* **Dashboard ROAS (blended / channel-level):** best for high-level planning, shown in Executive Summary and Marketing Overview.
* **MTA ROAS (if enabled):** best for multi-touch analysis, covered in the MTA documentation.

<Tip>
  If your ROAS looks different from in-platform reporting, it's usually due to attribution windows or revenue definitions. See [attribution windows FAQ](/help-center/faq/data-faqs/what-attribution-windows-does-sourcemedium-report-on-for-marketing-platforms).
</Tip>

## Common ROAS analyses

### 1. Channel comparison

Compare ROAS across channels to understand efficiency:

* Which channels drive the best return?
* Are you over-investing in low-ROAS channels?

### 2. ROAS trends over time

Track weekly/monthly ROAS trends:

* Identify seasonal patterns
* Spot declining efficiency early

### 3. New vs returning customer ROAS

If you have customer-level attribution:

* What's your ROAS on prospecting (new customers)?
* What's your ROAS on retargeting (returning customers)?

## Interpreting ROAS

| ROAS      | Interpretation                                          |
| --------- | ------------------------------------------------------- |
| \< 1.0    | Losing money on ads (spend > revenue)                   |
| 1.0 - 2.0 | Low efficiency; may not cover COGS/overhead             |
| 2.0 - 4.0 | Typical range for many DTC brands                       |
| > 4.0     | Strong efficiency (validate it's not measurement error) |

<Warning>
  A high ROAS isn't always good — it may indicate under-investment in growth. Balance ROAS against total revenue and new customer acquisition.
</Warning>

## Common pitfalls

* **Comparing apples to oranges**: Platform-reported ROAS uses different attribution than SourceMedium's unified view.
* **Ignoring attribution windows**: Different platforms use different default windows (e.g., Meta's 7-day click / 1-day view). Check your platform settings.
* **Looking at ROAS in isolation**: Always pair with total spend and revenue — a 10x ROAS on $100 spend is less valuable than 3x ROAS on $10,000 spend.

## Related resources

* [Marketing Overview module](/data-activation/managed-bi-v1/modules/marketing-overview-module)
* [Ad Performance table](/data-activation/data-tables/sm_transformed_v2/rpt_ad_performance_daily)
* [Attribution windows FAQ](/help-center/faq/data-faqs/what-attribution-windows-does-sourcemedium-report-on-for-marketing-platforms)
* [Contribution margin guide](/help-center/common-analyses/understanding-your-contribution-margin)