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Use this guide to understand Return on Ad Spend (ROAS) at global, channel, and campaign levels using SourceMedium data.

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What is ROAS?

ROAS measures the revenue generated for every dollar spent on advertising: 
ROAS = Revenue / Ad Spend
A ROAS of 3.0 means you earned 3inrevenueforevery3 in revenue for every 1 spent on ads.

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Where to find ROAS in SourceMedium

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Executive Summary

The Executive Summary module shows global ROAS across all paid channels.

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Marketing Overview

The Marketing Overview module breaks down ROAS by channel (Meta, Google, TikTok, etc.).

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Ad Performance table

For granular analysis, use rpt_ad_performance_daily:
  • ad_spend — Total spend
  • ad_platform_reported_revenue — Revenue attributed to ads (as reported by the ad platform)
  • Calculate: ad_platform_reported_revenue / ad_spend

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ROAS by attribution model

You’ll see ROAS reflected in a few different ways depending on the view you’re using:
  • Platform-reported ROAS: best for reconciling to Meta/Google/TikTok reporting, using rpt_ad_performance_daily (spend and platform-reported revenue).
  • Dashboard ROAS (blended / channel-level): best for high-level planning, shown in Executive Summary and Marketing Overview.
  • MTA ROAS (if enabled): best for multi-touch analysis, covered in the MTA documentation.
If your ROAS looks different from in-platform reporting, it’s usually due to attribution windows or revenue definitions. See attribution windows FAQ.

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Common ROAS analyses

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1. Channel comparison

Compare ROAS across channels to understand efficiency:
  • Which channels drive the best return?
  • Are you over-investing in low-ROAS channels?
Track weekly/monthly ROAS trends:
  • Identify seasonal patterns
  • Spot declining efficiency early

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3. New vs returning customer ROAS

If you have customer-level attribution:
  • What’s your ROAS on prospecting (new customers)?
  • What’s your ROAS on retargeting (returning customers)?

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Interpreting ROAS

ROASInterpretation
< 1.0Losing money on ads (spend > revenue)
1.0 - 2.0Low efficiency; may not cover COGS/overhead
2.0 - 4.0Typical range for many DTC brands
> 4.0Strong efficiency (validate it’s not measurement error)
A high ROAS isn’t always good — it may indicate under-investment in growth. Balance ROAS against total revenue and new customer acquisition.

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Common pitfalls

  • Comparing apples to oranges: Platform-reported ROAS uses different attribution than SourceMedium’s unified view.
  • Ignoring attribution windows: Different platforms use different default windows (e.g., Meta’s 7-day click / 1-day view). Check your platform settings.
  • Looking at ROAS in isolation: Always pair with total spend and revenue — a 10x ROAS on 100spendislessvaluablethan3xROASon100 spend is less valuable than 3x ROAS on 10,000 spend.