ROAS

Return on Ad Spend

ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. It is the inverse of ACOS. A ROAS of 4x means $4 in revenue for every $1 of ad spend.

Why ROAS Matters for Amazon Sellers

ROAS provides a clear picture of advertising profitability and helps sellers compare performance across campaigns, keywords, and ad types. Higher ROAS indicates more efficient advertising.

How RIDGE Analyzes ROAS

RIDGE reports benchmark ROAS across your niche competitors and model expected ROAS ranges for different advertising strategies, from aggressive launch campaigns to steady-state optimization.

Practical Example

With $500 in weekly ad spend generating $2,000 in ad-attributed sales, your ROAS is 4.0x (equivalent to 25% ACOS). If your break-even ROAS is 2.8x, this campaign is profitable.

Frequently Asked Questions

What is a good ROAS on Amazon?+

A good ROAS depends on your margins. For most categories, a ROAS of 3-5x is considered healthy. High-margin products can be profitable at 2x ROAS, while low-margin products may need 6x+ ROAS.

How do I improve my ROAS?+

Optimize keywords (pause low-performing, scale winners), improve listing conversion rate, adjust bids based on placement performance, and use negative keywords to eliminate wasteful clicks.

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