Return on Ad Spend (ROAS)

Return on Ad Spend (ROAS) is the ratio of revenue generated from ad-driven leases to the total cost of those ads, typically expressed as a multiple or percentage. A ROAS of 5x means every dollar spent on advertising returned five dollars in lease revenue. The calculation requires knowing both the lease revenue attributable to a campaign and the total spend for that campaign over a defined period.

While CPL measures efficiency in units (cost per outcome), ROAS measures efficiency in revenue, making it especially valuable for communities where average rent, lease term length, or renewal rates vary significantly. A campaign that produces leases at a high CPL may still deliver exceptional ROAS if it consistently attracts long-term residents at premium rent tiers. For luxury properties, Class A communities, or portfolios managing a mix of price points, ROAS provides a more complete picture of marketing ROI than lease volume alone. It also creates a more direct bridge between marketing performance and NOI conversations, which matters when marketing decisions are evaluated at the ownership or asset management level.