Detailed definition
A ROAS of 3x = 3 TL of revenue for every 1 TL you spend. It should not be confused with ROI (ROI is net profit, ROAS is revenue). In e-commerce, a healthy ROAS is 3-5x. Sectors with low profit margins need 5-8x (once revenue is converted into profit, you still have to break even). A low ROAS can be acceptable when acquiring new customers, because it is balanced out by LTV.
Examples
- 10K TL of advertising → 40K TL of revenue = 4x ROAS.