What does ROAS directly measure?

ROAS, or Return on Ad Spend, directly measures the revenue generated for every dollar spent on advertising. It quantifies the effectiveness of an advertising campaign by showing how much money a business earns in relation to its advertising expenses. For example, a ROAS of 5 means that for every $1 spent on ads, the business generates $5 in revenue. It's a key metric for assessing the profitability and efficiency of ad campaigns.