Reporting
ROAS vs ROI
By Adedon · Updated 2026-08-14
What is the difference between ROAS and ROI?
ROAS is conversion value attributed by an ads platform (or a simple revenue/spend ratio) divided by media spend. ROI is a profit idea: return after costs you choose to include — often product, refunds, and sometimes management and creative. A campaign can show strong ROAS and weak ROI if margins are thin or attributed revenue is inflated. Use ROAS as an operational lever; use ROI (or contribution) to decide if advertising is actually making money.
ROAS is a media ratio
It usually ignores COGS, agency fees, and returns. It uses the platform’s view of which sales count. That can still be useful for bidding and creative decisions inside one channel.
ROI needs a cost policy
Teams fight because they include different costs. Write the definition: media only, media plus management, fully loaded. Changing the definition every quarter is how finance stops trusting marketing.
Lead gen rarely has honest ROAS
Until you assign values or wait for closed revenue, ROAS is a placeholder. ROI on leads is even easier to fake. Prefer CPA and close rate until values exist.
Do not weaponize the gap
Sales will prefer the model that makes their channel look good. The adult move is dual reporting: platform ROAS and contribution from the books. Adedon will show both when you share the inputs.
Frequently asked questions
Is a 3x ROAS good?+−
Only relative to your break-even after the costs you include. There is no universal good ROAS.
Can ROI be negative with positive ROAS?+−
Yes, if ROAS uses gross sales and ROI uses profit after COGS and returns.
Should bidding use ROI?+−
Platforms bid on the values you pass. If you pass profit instead of revenue, behavior changes — and mistakes in that number become delivery mistakes. Be careful.
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