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ROAS Meaning in Retail Media: Return on Ad Spend Explained | Particular Audience

ROAS is attributed revenue divided by ad spend. What it shows, what it misses and how it relates to incrementality.

ROAS (return on ad spend)

ROAS, or return on ad spend, is the revenue attributed to an ad campaign divided by what the campaign cost. A ROAS of 5 means five units of attributed sales for every unit spent. It is easy to report but counts sales that might have happened anyway, so retail media teams pair it with incrementality tests.

How it is calculated

Attributed revenue ÷ ad spend, over an agreed attribution window.

What it misses

Whether the sale was caused by the ad, and effects on the brand's other products.

How Particular Audience does it

Related guides

  • Incrementality: Incrementality is the extra sales caused by advertising, measured against a group that did not see it.
  • Brand halo: Brand halo is the sales uplift across a brand's wider range caused by advertising one of its products.

Glossary · All guides