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True ROAS

True ROAS is the return on ad spend after subtracting the orders that would have happened without the ads: the holdout-tested incremental return.

True ROAS

True ROAS equals incremental revenue divided by ad spend. Incremental revenue is measured by holdout experiments, not estimated by an attribution model.

Why "true"

Reported ROAS counts every order the platform attributes. True ROAS counts only the orders the ads caused. The gap between the two is the share of attributed orders the holdout shows would have happened anyway.

How it's computed

Run a holdout experiment. Compare orders in the exposed audience to orders in the control. Divide the lift by the spend on the exposed audience. The result is the true ROAS.

Why it matters

Reported ROAS rewards channels closest to the conversion. True ROAS rewards channels that actually caused the conversion. Operators who optimise on true ROAS allocate budget to the campaigns that pay their way.

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