The short answer
Revenue per click measures attributed revenue divided by the clicks associated with that revenue. It connects the value of traffic to its cost. When both use the same click set, ROAS equals revenue per click divided by average cost per click.
Derive the relationship
ROAS = revenue per click ÷ average CPC
Revenue per click = orders per click × average order value
The last identity uses orders per click, which may differ from a report’s session conversion rate or rate of unique converting users. The revenue and order count must refer to the same population. For click-based campaign analysis, view-attributed revenue without a corresponding click population needs separate treatment.
A worked example
Illustrative inputs: 1,000 clicks, 25 orders, $80 average order value, and $500 spend. Revenue is 25 × $80 = $2,000. Revenue per click is $2,000 ÷ 1,000 = $2. Average CPC is $500 ÷ 1,000 = $0.50. ROAS is $2 ÷ $0.50 = 4×, matching $2,000 ÷ $500.
Revenue is not the affordable click price
If the illustrative pre-ad contribution margin is 40%, contribution per click is $2 × 0.40 = $0.80. Paying $2 per click would spend every dollar of revenue and leave the variable costs uncovered. Paying $0.80 would consume the modeled contribution before fixed costs. A lower target CPC leaves some contribution after advertising.
Diagnose a change
When revenue per click falls, separate orders per click from value per order. A new audience might convert less often; an increased discount could reduce order value. The decomposition identifies which input moved, but it does not prove why. Check tracking, traffic mix, and refund treatment before drawing conclusions about the landing page.
Use the result carefully
A click-value estimate based on a short period can change sharply when a high-value order arrives. Inspect order counts and matured data. When forecasting, write down the assumed conversion rate and order value separately so their uncertainty is visible. Do not set bids equal to historical revenue per click without allowing for costs and the possibility that future traffic behaves differently.
Find the value of the same clicks
- Gather: Export matching clicks, attributed purchases, revenue and spend.
- Produce: Calculate revenue per click and contribution per click before comparing with CPC.
Decision boundary: Do not attach view-attributed revenue to a click-only denominator without explaining the scope.
Next reading
Examples are illustrative, not client results or benchmarks. The calculations use the inputs shown; real-world decisions depend on your records and assumptions. Report a correction.