What is ad ROAS?

Ad ROAS (Advertising Return on Ad Spend) is an important metric for advertisers whose apps monetize with ads. It gauges the effectiveness of advertising campaigns in acquiring users who spend a lot of time using an app and engaging with ads, thus generating ad revenue for the app.

To calculate ad ROAS, you would divide the total revenue attributable to a specific ad campaign by the overall cost of said ad campaign. Depending on the individual publisher’s goals, Ad ROAS will be measured on specific day intervals (D0, D3, D30, etc.)

Why is ad ROAS important?

Ad ROAS is important because it helps app businesses understand the effectiveness of their advertising spend in terms of user acquisition, engagement, and revenue generation, which are crucial for the growth and sustainability of mobile apps.