Marketing Glossary

Short definitions for the metrics around return on ad spend, each one linked to the calculator that works it out. More families follow.

Break-Even ROAS

The lowest ROAS at which a campaign still covers its product costs: 1 divided by your gross margin. At a 50% margin that is 2.00x.

New Customer ROAS

ROAS counting only revenue from first-time buyers. It separates genuine acquisition from re-selling to people who already knew the brand.

POAS

Gross profit per unit of ad spend, as a multiple. Break-even sits at exactly 1, which is what makes it readable at a glance where ROAS is not.

ROAS

Revenue per unit of ad spend. A ROAS of 3 means $3 back for every $1 in. It says nothing about profit until you put your margin next to it.

ROMI

Gross profit per unit of ad spend, as a percentage. Positive means the campaign earns after product costs; a strong ROAS can still sit below zero.

Put your own numbers in

A definition tells you what a metric means. What it means for your account only shows once you type your own spend and revenue into it.