Definition
Return on Ad Spend (ROAS)
ROAS measures the revenue generated for every dollar spent on advertising. A ROAS above 1.0 means your ads are profitable; below 1.0 means you're losing money on acquisition.
ROAS is the ultimate measure of paid advertising efficiency. It's calculated as revenue generated divided by ad spend. For subscription apps, ROAS should be measured over the subscriber lifetime, not just initial purchase.
Improving ROAS involves targeting higher-value users, optimizing ad creatives, and improving post-install conversion. ASO contributes by increasing organic installs that don't cost anything, improving your blended ROAS.
Boost organic installs to improve overall ROAS with AppDrift.
Related Terms
Cost Per Install (CPI)
Cost Per Install (CPI) measures how much you pay on average to acquire one app installation through paid advertising. Lower CPI indicates more efficient user acquisition spend.
Lifetime Value (LTV)
LTV estimates the total revenue a user will generate throughout their relationship with your app. It's the key metric for determining how much you can spend to acquire users profitably.
Apple Search Ads
Apple Search Ads is Apple's official advertising platform for promoting apps in App Store search results. It offers both Basic (automated) and Advanced (keyword-targeted) campaign options.
Further Reading
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