Based on the data below, what is the return on ad spend (ROAS) for the campaign?
$3
$4
$5
$6
Choose an option to see if it’s correct. Check the explanation below.
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Explanation: Based on the data below, what is the return on ad spend (ROAS) for the campaign?
Explanation: The correct answer is **$6**. Return on ad spend (ROAS) is a metric used to evaluate the effectiveness of advertising campaigns by measuring the revenue generated for every dollar spent on advertising. It is calculated by dividing the total revenue generated from the campaign by the total advertising spend. In this case, the total revenue generated from the campaign is $120, and the total advertising spend is $20. Therefore, the ROAS can be calculated as follows: $120 (total revenue) / $20 (total ad spend) = $6. This means that for every dollar spent on advertising, the campaign generated $6 in revenue. A higher ROAS indicates better campaign performance and efficiency in generating revenue from advertising investments. Therefore, with an ROAS of $6, the campaign is deemed to be highly effective in driving returns and delivering a strong return on investment (ROI) for the advertiser.
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