GLOSSARY
ROAS (Return on Ad Spend)
What is ROAS?
DefinitionROAS is the gross revenue generated for every dollar spent on advertising. A 3× ROAS means $3 of revenue per $1 of ad spend.
Formula
ROAS = Revenue from ads ÷ Ad spendROAS is a top-line efficiency signal, not a profit measure: it ignores margin, retention, and blended cost. Health & wellness ROAS averaged ~2.12 in 2026 (down 15.6% YoY), per industry benchmark data. A 3× ROAS on a $150 GLP-1 first order is really 1.5× on gross profit at 50% COGS, and after intake and payment costs the first order can merely break even; for subscription telehealth the better decision rule is to judge campaigns on CAC payback and LTV:CAC, and tolerate first-order ROAS below break-even when rebills reliably repay it.
Related terms
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