ROAS (Return on Ad Spend)
Definition
A performance ratio comparing revenue generated from a campaign to the amount spent. Calculated as revenue divided by ad spend and expressed as a multiple — for example, 3x means $3 generated per $1 spent.
Context
Post the September 2025 algorithm overhaul, Reddit reported that average ROAS across most verticals improved significantly. Treat platform-reported benchmarks as directional context rather than guaranteed outcomes — actual ROAS varies significantly by category, creative quality, targeting approach, and the attribution model applied.
Relevance to Reddit
ROAS is the primary revenue efficiency measure for e-commerce Reddit programs. Reddit's native attribution consistently undercounts contribution because it captures only the final click. Supplement ROAS data with self-reported attribution surveys and marketing mix modeling to understand Reddit's true contribution across the full buyer journey.
