What is ROI vs ROAS?

ROI and ROAS are often confused. ROAS is a revenue ratio on ad spend; ROI is a profit ratio on total investment. POAS sits between them for ad decisions.

4 min read

Live profit view

See POAS vs revenue-only reporting

Profit Bid connects store costs to ad spend so you bid on margin — not vanity ROAS.

Same campaign, three lenses

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One campaign looks very different depending on whether you measure revenue, ad profit, or total return.

Track POAS automatically from your store — upload profit conversions and scale winners with A/C/X labels.

The core difference

ROAS 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% ROAS on a 15%-margin product may deliver a negative ROI once COGS, shipping, and fees are included.

Where POAS fits

ROI is the right lens for the business, but it is hard to compute per keyword. POAS brings profit to the ad level by dividing contribution margin by ad spend.

Optimize campaigns on POAS, then confirm the business-level ROI improved.

Frequently asked questions

Common questions about this topic — tap to read answers.

Is ROAS a type of ROI?

Not really. ROAS uses revenue and only ad spend; ROI uses profit and total investment. They are related but distinct.

Which should I optimize ads on?

Use POAS for ad decisions (profit per ad dollar) and track ROI at the business level to confirm real returns.

Pricing

Apply this guide — pick your plan

Select a plan and continue to secure checkout — POAS conversion upload included on every tier.

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