What does ROAS mean? Return on ad spend, and how it is worked out
The ArabyBot teamOfficial Meta partner · written from our own platform dataOn this page 5
The short answer
ROAS stands for «return on ad spend»: the value of sales the ad brought divided by what you spent on it. A ROAS of 3 means each unit of ad spend brought three in sales — before the cost of goods and shipping.
Also asked as: «يعني ايه roas» · «roas معنى» · «ازاي احسب roas»
How is ROAS worked out?
ROAS = revenue ÷ ad spendExample: you spent EGP 1,500 and delivered orders worth EGP 4,500 came in. ROAS = 4,500 ÷ 1,500 = 3.
Why does ROAS matter to a seller?
Because it tells you whether the ad makes money. But in a cash-on-delivery store, count delivered orders, not placed ones: an order refused at the door is not a sale, and counting it makes a losing ad look profitable.
ROAS in ArabyBot
The ads manager reports in delivered orders, not messages, and the Conversions API tells Meta about every confirmed, delivered and returned order, so the ad learns from people who actually receive.
Frequently asked questions
What is a good ROAS?
One that covers goods, shipping and ads and leaves a profit. A store with a 50% margin needs a ROAS above 2 to make money.
What is the difference between ROAS and ROI?
ROAS divides sales by ad spend only; ROI counts net profit after every cost. The first is quicker, the second truer.
Why does ROAS in the ads manager differ from reality?
Because Meta counts what it is told; told about placed orders, it sees them as sales. Telling it about delivered and returned orders brings the figure closer to the truth.
Related terms
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