Advertising Guide

ROAS vs ROI: Understanding the Difference

ROAS and ROI both compare output with spending, but they are designed for different scopes.

ROAS

ROAS usually compares revenue attributed to advertising with ad spend. It is intentionally narrow.

ROI

ROI is broader and can incorporate the initial investment and net gain from a project or activity.

When to use each

Use ROAS to compare advertising efficiency. Use ROI when the decision includes broader costs and returns beyond the ad platform.

Practical takeaway

Use the metric that matches the business question you are trying to answer. When several metrics describe different stages of the same workflow, compare them together rather than optimizing one in isolation.