The first part of understanding Return on Ad Spend is the difference between Revenue and Return.

Let's say you have a campaign with a $1,000 budget on Vantage. That means $870 of ad spend. 

Assuming you get the average return, you'll have a 10X return on ad spend.

Here's how we calculate that.

Revenue = Gross sales that were attributed to the campaign
Return = Revenue minus ad spend

First we calculate the Return by subtracting Ad Spend from the revenue:

Return = Revenue - Ad Spend
Return = $9,570 - $870
Return = $8,700

Then to calculate the Return on Ad Spend we divide the Return by the Ad Spend:

Return on Ad Spend = Return / Ad Spend
Return on Ad Spend = $8,700 / $870
Return on Ad Spend = 10X

Calculating ROAS is essential to understanding the success of your social ad campaigns. Once ads are optimized you should always be getting more than you put in!

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