Which of the following are used to calculate ROAS? (select two)
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Correct answer: Ad spend, Revenue.
Why this is the answer
Return on Ad Spend (ROAS) is a key metric for evaluating the effectiveness of advertising campaigns. It is calculated by dividing the total revenue generated from an advertising campaign by the total cost of that advertising campaign. Therefore, Revenue and Ad spend are the two components necessary for this calculation. Profit margins are a separate financial metric that considers the cost of goods sold, not just ad spend, and are not directly used in the ROAS calculation. Bid limits are a setting within advertising platforms that control how much you're willing to pay per click or impression, but they are not a direct component of the ROAS formula itself.
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