Which of the following is the correct formula for ROAS?
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Correct answer: revenue / cost.
Why this is the answer
Return on Ad Spend (ROAS) measures the effectiveness of advertising campaigns. The correct formula is Revenue / Cost, as it directly calculates how much revenue is generated for every dollar spent on advertising. This metric helps businesses understand the profitability of their ad campaigns. "Cost / action" is incorrect because it represents the cost per acquisition, not the return. "Revenue / transactions" is incorrect as it measures average transaction value, not ad spend efficiency. "Transactions / clicks" is incorrect because it relates to conversion rate, not financial return on investment.
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