Revenue After Ad Spend (RAAD): Net Revenue Minus Ads

Revenue After Ad Spend (RAAD) measures total order revenue minus advertising spend—how much revenue remains after paying for ads.

Formula

RAAD = Total Order Revenue − Ad Spend

Formula Components

Metric	Definition
Total Revenue	Complete order revenue including shipping and taxes
Ad Spend	Total advertising spend across platforms

Metadata
Type	Currency
Data Source	Shopify, Meta Ads, Google Ads
Aggregation	Sum

Example

Your Shopify store generated $200,000 total revenue and spent $25,000 on ads.

Component	Amount	Calculation
Total Revenue	$200,000	All order revenue
Ad Spend	$25,000	Advertising cost
RAAD	$175,000	$200,000 − $25,000

How It Works

RAAD shows the revenue remaining after advertising costs. It’s a simple but powerful metric—positive RAAD means your ads cost less than the revenue they help generate. Track RAAD alongside ROAS for a complete picture.

When to Use

Scenario	Action
Measuring dollar impact	RAAD shows absolute revenue after ads
Budget planning	Ensure RAAD covers remaining costs
Trend analysis	Track RAAD growth over time
Comparing periods	See absolute revenue improvement

Metric	Relationship
RAAD (Gross)	Gross revenue minus ad spend
RAAD (Net)	Net revenue minus ad spend
ROAS	Revenue per ad dollar (ratio)

See all Performance metrics →