In paid advertising, ROAS stands for what and what does it measure?

• A. Return on Advertising Spend; measurement of ad clicks
• B. Return on Ad Spend; measurement of spend efficiency
• C. Return on Ad Spend; measurement of campaign profitability
• D. Rate of Ad Spending; measurement of ad reach

Answer: (C)

ROAS stands for Return on Ad Spend, and it measures how much revenue is generated for every dollar spent on advertising. This connection between revenue and ad spend makes it a gauge of spend efficiency, and in practice that efficiency is what supports campaign profitability because more revenue per ad dollar generally means a stronger financial return after costs. The other options don’t fit: ROAS is not about counting ad clicks, it’s not solely about spend efficiency without tying it to revenue, and it doesn’t measure ad reach. So the best answer captures that ROAS is a revenue-per-spend ratio used to assess how profitable a campaign is in financial terms.