ROAS (Return on Ad Spend)
Return on Ad Spend (ROAS) indicates the revenue generated from a specific mobile ad campaign and it measures the effectiveness of it. It is crucial for mobile advertisers to determine and track the most efficient sources that bring the most quality app users.
If ROAS of an ad campaign is negative, it means the ad campaign requires more cost than the revenue generated from acquired users. In this case, the ad campaign should be optimized or stopped. To decide on if a mobile ad campaign should continue running, it should be ROAS positive. To make a mobile ad campaign ROAS positive, all campaign elements including creatives, ad types selected, app store pages, CTAs, and target audiences should be optimized.
Within ROAS calculation, all the revenue coming from in-app purchases and in-app advertising is taken into consideration.
ROAS= Total Revenue Generated from an Ad Campaign / Total Cost of the Mobile Ad Campaign
Get Featured On Mobile Marketing Reads!
We help companies in the mobile marketing ecosystem to reach a qualified, engaged audience for branding, thought leadership,and lead-generation.
LATEST MOBILE MARKETING NEWS
-
in News, Trends & ReportsSubscription revenue surges 105% YoY in Q1 2026, outpacing ads and in-app purchases
Subscription-based monetization emerged as the fastest-growing revenue stream in the mobile app economy during the first quarter of 2026, according to AppsFlyer’s latest report. The report found that subscription revenue processed through app stores increased 105% year-over-year in Q1 2026, significantly outpacing other monetization channels. By comparison, store-based in-app purchase (IAP) revenue grew 29%, while […] More
-
in News, Trends & ReportsGlobal IAP revenue hits $43.5B in Q1 2026, marking 13 straight quarters of growth
Global consumer spending on mobile apps continued to rise in the first quarter of 2026, with in-app purchase (IAP) revenue across iOS and Google Play reaching $43.5 billion, representing 9% year-over-year growth, according to Sensor Tower’s latest report. The quarter also marked the 13th consecutive period of positive expansion for the mobile app economy. Non-gaming […] More
-
The Best AI Note-Taking Apps
In today’s fast-paced digital world, the need for effective note-taking tools has never been greater. Whether you are a student, professional, or simply someone who likes to keep track of ideas and to-do lists, traditional note-taking methods often feel cumbersome and inefficient. Fortunately, advancements in artificial intelligence (AI) have ushered in a new era of […] More