Paid ads. Reviewed October 29, 2026
ROAS
Also called: Return on ad spend
Return on ad spend is revenue from ads divided by the money spent on them; a ROAS of 5 means five dollars of revenue for every dollar of ads, before the cost of doing the work.
In practice
It is a revenue ratio, not a profit ratio. A roofer at 40 percent gross margin needs a ROAS above 2.5 just to break even on the job, before the management fee.
Agencies quote ROAS because it is a big number. Ask for cost per booked job instead.
Related terms
- Cost per acquisitionCost per acquisition is what it costs in marketing to win one paying customer, which for a contractor means a booked and completed job, not a lead.
- Ad spend vs management feeAd spend is the money paid to Google or Meta for the ads themselves, and the management fee is what an agency charges to run them; a quote that blends the two hides what the ads actually cost.
- Average ticketAverage ticket is the average revenue per completed job, and it is the number that decides how much a business can afford to pay for a lead.
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