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ROAS (Return on Ad Spend)
Definition
A metric measuring revenue generated per dollar spent on advertising. ROAS of 3x means $3 revenue for every $1 spent on ads.
Related Terms
ROI (Return on Investment)
A metric measuring the profitability of an investment. Calculated as (Revenue - Cost) / Cost × 100%. Positive ROI means profit, negative means loss.
CPA (Cost Per Action)
A pricing model where advertisers pay for a specific action taken by a user, such as a purchase, sign-up, or deposit. CPA is the most common model in affiliate marketing.
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