Based on the data below, what is the return on ad spend (ROAS) for the campaign?





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Explanation: Return on ad spend (ROAS) is a crucial metric that assesses the effectiveness of advertising campaigns by measuring the revenue generated for every dollar spent on advertising. To calculate ROAS, divide the revenue generated from the campaign by the cost of the campaign. In this scenario, the revenue generated by the campaign is $50,000, and the cost of the campaign is $10,000. Therefore, the ROAS can be calculated as $50,000 (revenue) divided by $10,000 (cost), resulting in an ROAS of $5. This means that for every dollar invested in the advertising campaign, the company earns $5 in revenue. A higher ROAS indicates that the advertising campaign is more effective in driving revenue relative to its cost, making it a key performance indicator for assessing the profitability and efficiency of marketing efforts. In this case, the ROAS of $5 signifies that the campaign is generating a strong return on investment, making it a successful and lucrative advertising initiative.

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