ROAS stands for Return On Ad Spend, and it’s a metric that marketing firms use to report the amount earned from a dollar of advertising.
In isolation, this metric is helpful to understand the effectiveness of each advertising platform.
But when it comes to your overall Return On Ad Spend, the marketing firm will usually not include their fee in the reported results.
This gives an illusion that your advertising campaigns are more profitable than they really are (and overall they actually may be making a loss).
So if you engage a marketing firm, make sure they include all of the associated costs of their advertising in their reported results.
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