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Understanding ROAS (Return on Ad Spend)

ROAS (Return on Ad Spend) is a key metric in the Grow and Advertising sections of your Understory dashboard.

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ROAS (Return on Ad Spend) is a key metric in the Grow and Advertising sections of your Understory dashboard. It measures how much revenue your ads generate for every dollar you spend on advertising. This helps you understand if your marketing efforts are paying off and how efficiently your budget is being used.

For example:

If your ROAS is 3.25, it means that for every 1 dollar you invest in ads, you earn 3.25 dollars in ticket sales.

A ROAS above 3.0 is typically considered strong in experience marketing. The goal with Understory Grow is to help you reach a ROAS of 4 or higher, though this can vary depending on your ticket prices and the season.

Tip: Even if your cost per purchase seems high, always view it alongside your average order value. If buyers often choose higher-priced experiences or book multiple tickets, your ads may still be very profitable.


How to find your ROAS in Understory

Requirements: You must have access to the "Grow" and "Advertising" sections in your Understory dashboard.

  1. Click "Grow" in the navigation menu – Opens Grow dashboard

  2. Choose "Advertising" from the side menu – Displays all your ad campaigns

  3. Look for "ROAS" column in the report – See your return on ad spend


How does ROAS work and why is it important?

ROAS shows you the relationship between your advertising spend and the revenue it brings in, making it easy to see which campaigns are performing best. You should use this number when deciding how much to spend on ads, compare the efficiency of different campaigns, or spot opportunities to increase your profits. Focusing on ROAS helps you make better, data-driven choices about your ad budget.


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