In context
You spent $5,000 and generated $18,000 attributed revenue: ROAS = 3.6x. With 55% gross margin, gross profit = $9,900, net of ad spend = $4,900 contribution. Compare that to a 1.8x ROAS campaign: $9,000 revenue × 55% = $4,950 gross, minus $5,000 spend = losing money.
Why it matters
- ROAS is easier to communicate than CPA but hides margin and AOV effects.
- ROAS depends on attribution window, same as CPA.
- Blended ROAS (all channels) is always truer than platform-reported ROAS.
Related terms
Frequently asked questions
Is 2x ROAS profitable?
Rarely. Only if your gross margin is 60%+ AND you have strong repeat purchase behavior boosting LTV.
Why is my Meta-reported ROAS higher than actual?
iOS 14.5+ attribution gaps, view-through bias, and cross-channel cannibalization inflate platform ROAS by 10-30%.
What's a unicorn ROAS?
For cold acquisition on Meta in 2026: sustained 5x+ is elite. Anything above 8x is either beginner luck or retargeting-only math.