Return on advertising spend, or ROAS, compares attributed conversion value with ad spend. Google Ads calculates conversion value per cost by dividing conversion value by cost. A Target ROAS bidding setting is a desired result, so it should be distinguished from the return actually reported. Source: Google Ads: Conversion value per cost definition

Define the value first

In an illustration, £2,000 of attributed value against £500 of ad spend gives a ratio of 4:1, or 400%. For a travel-business report, state whether the value represents booking value, retained income or an assigned lead value. This prevents readers from treating unlike values as directly comparable.

Keep the calculation honest

Check the value settings, reporting period and attribution approach before presenting the result. Keep a target separate from the measured outcome, as Google’s Target ROAS guidance describes a bidding objective. For a profit review, list the other costs and adjustments you intend to include rather than calling the advertising ratio profit. Source: Google Ads: About Target ROAS bidding

Written and updated by Travelgenix. Sources checked on 16 October 2026. Worked examples and recommendations are editorial illustrations, not customer results.