The formula to calculate Return on Advertising Spend (ROAS) is:
\[ \text{ROAS} = \left( \frac{\text{Revenue from Advertising}}{\text{Cost of Advertising}} \right) \times 100 \]
Let's calculate the ROAS for an advertising campaign with the following information:
ROAS = \(\left( \frac{\$3,000}{\$1,000} \right) \times 100 = 300\%\)
This means that for every dollar spent on advertising, the campaign returns $3 in revenue.
