Blended ROAS

Definition

Blended ROAS is revenue divided by total ad spend across channels. It reduces attribution noise but hides channel-level performance.

Formula

Blended ROAS = total revenue / total ad spend

How to use it

• Use blended ROAS to align finance and marketing on top-down health.
• Use channel ROAS to optimize allocation within a blended target.
• Pair blended ROAS with margin to see if growth is actually profitable.

Common mistakes

• Using blended ROAS to scale a single channel (it can hide weak channels).
• Comparing periods with different attribution windows or delayed revenue recognition.
• Ignoring changes in pricing or refunds that distort revenue.

Why this matters

This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.

Practical checklist

• Write a 1-line definition for "Blended ROAS" that your team will use consistently.
• Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
• Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
• Use a calculator that references this term (e.g., ROAS Calculator) to sanity-check assumptions.
• Read the related guide (e.g., MER (blended ROAS): how to use it without fooling yourself) for context and common pitfalls.

Where to use this on MetricKit