TROAS - Target Return On Ad Spend

What does TROAS mean?

TROAS means Target Return On Ad Spend. It is the same as ROAS, only this is the target.

What is my TROAS?

Your TROAS depends on the performance of your business. We mostly help retailers and after working in retail ourselves, we know that owning an online store comes with certain costs. There’re costs of goods sold, logistics, overhead and marketing costs for instance. Therefore, it is critical to KNOW what you can afford on marketing like Google Ads before you decide to do it.

The good news is, you can actually calculate it! But sometimes, store owners struggle to come up with the right calculation or forget to take certain aspects into account. That’s why we introduced the Profitable Revenue Calculator. It is specifically designed for retailers to estimate your required monthly budget and needed revenue (hello TROAS) based on some key metrics of your business.

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