See Profit on Ad Spend vs revenue-only reporting
Profit Bid connects store costs to ad spend so you bid on margin — not vanity Return on Ad Spend.
Track Profit on Ad Spend automatically from your store — upload profit conversions and scale winners with A/C/X labels.
The core difference
Return on Ad Spend ignores costs beyond ad spend and uses revenue as the return. ROI accounts for all costs and uses profit. That is why they can point in opposite directions.
A campaign at 500% Return on Ad Spend on a 15%-margin product may deliver a negative ROI once COGS, shipping, and fees are included.
Where Profit on Ad Spend fits
ROI is the right lens for the business, but it is hard to compute per keyword. Profit on Ad Spend brings profit to the ad level by dividing contribution margin by ad spend.
Optimize campaigns on Profit on Ad Spend, then confirm the business-level ROI improved.
Frequently asked questions
Common questions about this topic — tap to read answers.
Is Return on Ad Spend a type of ROI?
Not really. Return on Ad Spend uses revenue and only ad spend; ROI uses profit and total investment. They are related but distinct.
Which should I optimize ads on?
Use Profit on Ad Spend for ad decisions (profit per ad dollar) and track ROI at the business level to confirm real returns.
