Question: Which advertising metrics showcase the amount made for every dollar spent on advertising?
- Click-through rate (CTR)
- Advertising cost of sales (ACOS)
- Return on ad spend (ROAS)
Explanation
Return on ad spend measures attributed sales generated for each dollar spent on advertising. It is calculated by dividing attributed sales by ad spend. This metric is used to evaluate revenue efficiency because it shows how much sales value advertising spend produced. A higher ROAS indicates stronger revenue return from the campaign budget.
Why the other options are incorrect
Click-through rate measures the percentage of impressions that generated clicks, not revenue per advertising dollar.
Advertising cost of sales measures ad spend as a percentage of attributed sales, so it shows cost efficiency rather than amount made per dollar spent.
Source for verification
https://advertising.amazon.com/library/guides/amazon-advertising-cost-of-sales-acos
https://advertising.amazon.com/library/guides/measure-improve-campaigns
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