ROAS VS COS

You have probably heard people use ''ROAS'' and you have probably heard people use ''CoS'' while talking about the results of their campaigns. But whats the difference?

ROAS is Return on Ad Spend. 

Example 1: If you spend 10 in ads and get 100 in Sales, it is 1 000% ROAS. 100/10 = x10 times in return = 1 000 in %. 

Example 2: 105 in ad spend generating 700 in sales and conversion = 700/105 = x6,67 times in return = 667% ROAS.

 

 

CoS is Cost of Sales. 

CoS is sometimes called ACOS (Average Cost of Sales)

Example 1: If you spend 10 in ads and get 100 in Sales, it is 10% CoS. 10/100 = 10% of your sales generated is your cost. 

Example 2: 105 in ad spend generating 700 in sales and conversion = 105/700 = 15% Cost of Sales. 

Formula for converting to CoS-%: 100% / (ROAS%)

Formula for converting to ROAS-%: 100% / (CoS%) x 100

Table for converting CoS & ROAS