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  3. ROAS
GLOSSARY DEFINITION • D2C BRANDS

Return On Ad Spend (ROAS)

Direct gross revenue attributed to an advertising platform divided by the net ad spend incurred on that specific channel.

ROAS FORMULA & STANDARD
ROAS = Attributed Campaign Revenue (₹) ÷ Net Advertising Spend (₹)

₹16,60,000 revenue ÷ ₹2,00,000 ad spend = 8.3x ROAS

01 / DEFINITION & SIGNIFICANCE

Why ROAS matters for D2C Brands

Direct gross revenue attributed to an advertising platform divided by the net ad spend incurred on that specific channel.

ROAS measures campaign delivery efficiency. However, top D2C teams never evaluate in-platform ROAS in a vacuum; it must be audited alongside gross margins, blended acquisition costs, and repeat cohort LTV.

02 / THE CALCULATION BLUEPRINT

How to track and calculate ROAS

ROAS = Attributed Campaign Revenue (₹) ÷ Net Advertising Spend (₹)

₹16,60,000 revenue ÷ ₹2,00,000 ad spend = 8.3x ROAS Tracking this metric systematically inside your analytics stack eliminates guesswork and aligns marketing spend with true business outcomes.

03 / INDUSTRY BENCHMARK MATRIX

Typical ROAS benchmarks by segment

Segment / Business Model Typical Range DesignScript Target
Beauty & Personal Care (First Order)2.8x – 4.5x> 3.5x
Fashion, Jewellery & Luxury3.5x – 6.0x> 4.5x
Specialist Food & Beverage2.2x – 3.8x> 3.0x
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