What is ROAS?
Return on ad spend (ROAS) is a revenue-based metric that measures the efficiency of an advertising campaign by comparing the revenue it generates to the amount spent on it.
In mobile marketing, ROAS is usually calculated from the in-app purchases, ad impressions, and subscription revenue a campaign's users generate, measured for a specific user segment so the cost of acquiring that segment can be compared directly to the revenue it produced.
Why does ROAS matter?
A healthy ROAS is a sign that an advertising strategy is working. It indicates the campaign is generating more in revenue than it costs to run. A low ROAS can signal that a campaign's targeting, creative, or budget needs to be revisited.
Since ROAS ties spend directly to revenue, it's one of the fastest ways for a marketing team to tell whether a specific campaign, channel, or ad set is paying off.
How is ROAS calculated?
ROAS is calculated by dividing the revenue an ad campaign generates by the amount spent on that campaign:
ROAS = Revenue ÷ Ad spend
Worked example of ROAS
If a campaign spends $2,000 and generates $10,000 in revenue:
ROAS = $10,000 ÷ $2,000 = 5:1
For every $1 spent, the campaign returned $5 in revenue. For mobile user acquisition, that revenue typically comes from the in-app purchases or ad revenue generated by the users acquired through the campaign.
Unity's own ad platform expresses the same calculation as average revenue per user (ARPU) divided by cost per install (CPI), since ARPU and CPI serve as mobile-specific measures of per-user revenue and cost.
To set a ROAS goal for a Unity Ads campaign, see Set up ROAS goals.
What are ways to boost ROAS?
- Use engaging ad formats: Playable ads and rewarded video let users try a game before installing, so the users a campaign acquires are more likely to stick around and spend.
- Watch performance by segment, not just in aggregate: Comparing ROAS across ad networks, countries, and creatives shows where the budget is actually paying off, instead of one blended number hiding both strong and weak campaigns.
- Pair ROAS with retention and revenue metrics: A campaign's ROAS is only a healthy signal when it lines up with real user retention and ad revenue, not spend alone.
What are the benefits of using ROAS?
- Compare channels directly: See which ad networks, creatives, or campaigns generate the most revenue for the budget spent, so the budget can shift toward what's working.
- Simplify reporting: ROAS reduces a campaign's performance to one clear number, money out and money back, making results easy to explain to non-marketers.
- Catch underperforming campaigns early: A dropping ROAS is often the first sign that a campaign's targeting or creative needs attention, before it becomes a bigger budget problem.
What are the challenges of using ROAS?
- Short measurement window: ROAS is usually measured over a specific window, so it can miss revenue a user generates later in their lifetime, which is why it's worth pairing with LTV.
- Attribution gaps: ROAS is only as accurate as the data behind it, privacy changes and multi-touch customer journeys can make it harder to credit revenue to the right campaign.
- Doesn't capture volume: A small, cheap campaign can post a high ROAS with very few users, so a healthy ROAS on a tiny campaign doesn't necessarily mean it's ready to scale.
ROAS vs. LTV
ROAS and lifetime value (LTV) are often confused because both measure revenue against a cost.
A campaign can post a strong early ROAS and still under-deliver on LTV if the users it acquires stop spending or leave the app quickly. This is why the two are meant to be read together, not as substitutes for each other.
Successful ROAS case studies
Real Unity Ads customers have posted measurable ROAS improvements across different inventory types:
- On-device advertising: Gunosy reached 130% of its ROAS goal using Aura from Unity.
- On-device advertising: Funvent drove 30% D7 ROAS growth, also using Aura.
- Mediation / supply optimization: XGame improved ROAS 10–20% by using supply-source allow lists in its Unity Ads ROAS campaigns.
- Offerwall: IEC Games boosted D7 ROAS by 40% with the Tapjoy Offerwall.
Frequently asked questions (FAQ)
What is considered a good ROAS?
There's no single good ROAS number.It depends on profit margins and business model. Mobile games with thin margins may need a much higher ROAS than a subscription app with high recurring margins, so it's best to compare ROAS against a specific app or campaign's own break-even point rather than a generic industry average.
What is break-even ROAS?
Break-even ROAS is the point where the revenue an ad campaign generates exactly covers what was spent on it. It's calculated as 1 divided by the profit margin percentage, and it's a useful minimum target before a campaign is considered successful.
How is ROAS different from ROI?
ROAS measures the revenue generated per dollar spent on advertising alone. ROI (return on investment) is broader: it factors in every cost tied to a campaign, not just ad spend, to measure overall profitability. A campaign can show a strong ROAS and still show a weaker ROI once other costs are included.