In plain English
In advertising the distinction from ROAS matters. ROAS compares revenue to media spend; ROI compares profit to total cost, including production, salaries and tools.
ROI is the more honest number and the harder one to produce, because the cost side is rarely fully counted.
What to know
Profit over total cost
Not revenue over media spend.
Includes everything
Production, staff time, tools, agency fees.
Harder to calculate
Which is why ROAS is quoted instead.
The number that matters
To anyone outside marketing.
Why it matters
A campaign can show a strong ROAS and a negative ROI once creative production and management time are counted. Finance asks about the second one.
Common mistakes
×Reporting ROAS and calling it ROI.
×Excluding staff time and production from the cost side.
×Comparing ROI figures calculated on different bases.
×Presenting a single figure with no stated assumptions.
FAQs
ROAS or ROI?
ROAS for channel efficiency, ROI for whether the activity made money.
What is usually left out?
Staff time, creative production and platform fees.
WRITTEN BY TARIQ SALLAM
Marketing Consultant. Entrepreneur. Content Creator.
I'm a marketing consultant, entrepreneur and content creator. I help businesses grow through practical marketing, websites, SEO, content and AI.
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