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Definition
Blended ROAS adds up the revenue that each ad platform claims and divides it by the total spend on those platforms. It is a sum of platform claims, not a store number, so it can overstate what the ads did.
Blended ROAS = sum of platform-reported revenue / sum of ad spend across platformsExample with made-up numbers: Platform A reports 6,000 of revenue on 2,000 of spend, and platform B reports 4,000 on 1,000. Blended ROAS = (6,000 + 4,000) / (2,000 + 1,000) = 3.33. The store's total revenue for the same period is 9,000 and its total marketing spend is 3,000, so MER is 3.00.
How to use it
Each platform counts the orders it claims, using its own attribution window and rules. When two platforms claim the same order, the order is added twice, so the total can be larger than the revenue the store actually received. The ratio can then look better than the business is.
Show blended ROAS only as a labelled summary of platform reporting, and say that it adds platform claims. For a question about the whole business, compare it with MER, which divides store revenue by total marketing spend.
