ROAS, or Return on Ad Spend, is a metric that helps sellers understand how much they are getting back for each dollar they spend to promote their closet.
In other words, this is the amount in sales made as a direct result of promoting. You are charged at the end of each weekly billing cycle for the amount of your weekly budget that was spent.
When you sell through Promoted Closet, we will calculate the ROAS from a given time period as follows:
| ROAS = Total Sales ÷ Total Spend |
Example: If you made $100 in sales from Promoted Closet one week and spent $20 of your weekly budget.
ROAS = $100 ÷ $20 = 5. That means for every dollar spent, you made $5 in sales.
Optimizing Your ROAS
Understanding and keeping tabs on your ROAS is essential for optimizing your promotion.
A higher ROAS indicates that the budget you’ve set for promoting your listings is generating more sales—your listings are reaching the right shoppers and turning that engagement into sales!
Here are some pointers to help you improve your ROAS:
- Regularly monitor your performance metrics such as Clicks, Sales, Spend etc.
- Test different budget levels for your closet, since the budget you set directly impacts the visibility of your listings. Learn more on Setting Your Weekly Budget.
- Head over to your Performance Dashboard to view insights into your promoted listings in the Listing Details section.
Back to Performance
Questions?
Visit the Support Center for common FAQs about Promoted Closet.
Need Additional Help?
Reach out to support@poshmark.com for order-related and customer support inquiries.