ROAS and ROI

ROAS (return on ad spend) is the revenue generated per euro spent on advertising. ROI (return on investment) relates the net gain, after costs, to the investment. ROAS ignores costs other than advertising, hence a decent ROAS can sometimes be unprofitable.

Example

ROAS = ad revenue / ad spend; ROI = (gain - cost) / cost

Related concepts

The whole glossary