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What Is ROAS (Return on Ad Spend)?

ROAS (Return on Ad Spend) the ratio of revenue generated from advertising to the amount spent on that advertising. It measures the effectiveness of your ad campaigns.

How Dashboardly Tracks ROAS

Dashboardly calculates ROAS from your live TikTok Shop data — pulling actual orders, fees, refunds, and returns so the number you see matches your P&L.

  • Actual order revenue — not estimated or attributed revenue
  • Refunds and returns deducted automatically
  • All platform fees included for profit-level accuracy
  • Historical trends so you spot changes before they hit profit

Frequently asked questions

What is a good ROAS?

TikTok Shop: Average 1.4-2.5x, Good 3-5x, Excellent 5x+. Spark Ads outperform in-feed by 20-40%.

How do I calculate ROAS?

ROAS = Revenue from Ads / Ad Spend

Why is my ROAS different from what TikTok Shop reports?

TikTok's native reports use attributed metrics with click- and view-through windows. Dashboardly calculates ROAS from actual order revenue, deducting refunds and returns for a truer number that matches your real P&L.

When should I track ROAS?

ROAS is a leading indicator — check it daily if you're running ads or running pricing experiments, weekly otherwise. Dashboardly tracks ROAS automatically so you don't have to pull exports.

Related tools & resources

Read more about ROAS in tracking ad spend at the SKU level.

The ratio of revenue generated from advertising to the amount spent on that advertising. It measures the effectiveness of your ad campaigns.
Definition

The ratio of revenue generated from advertising to the amount spent on that advertising. It measures the effectiveness of your ad campaigns.

Formula

ROAS = Revenue from Ads / Ad Spend

Example Calculation

$12,000 revenue from TikTok ads / $2,000 ad spend = 6.0x ROAS

Benchmarks for TikTok Shop Sellers

TikTok Shop: Average 1.4-2.5x, Good 3-5x, Excellent 5x+. Spark Ads outperform in-feed by 20-40%.

Why It Matters for TikTok Shop Sellers

The ratio of revenue generated from advertising to the amount spent on that advertising. It measures the effectiveness of your ad campaigns.

Related Terms

Track This Metric Automatically

Dashboardly connects to your TikTok Shop and calculates this metric plus 30+ others per SKU. No spreadsheets. No manual math.

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