What ROAS measures
ROAS compares attributed revenue with ad spend according to the advertising platform’s attribution model. It is useful for analysing marketing performance, but attributed revenue is not a second revenue stream that should be added to actual store sales.
What ROAS does not include
COGS, shipping, payment fees, refunds, discounts and other business costs are not inherently included in ROAS. Two campaigns with the same ROAS can therefore have very different economics if they promote products with different margins or produce different return rates.
How to use both together
Keep Marketing Attribution separate from Business Truth. Use actual Net Revenue and real ad spend in the profitability equation, while attributed revenue and ROAS remain additional context for marketing decisions. This avoids implying that the ad platform certainly caused all the revenue it attributes to itself.
What to check in practice
FAQ
Is ROAS a profitability metric?
Not by itself. It is a marketing-attribution metric and does not include the store’s full cost structure.
Can I have good ROAS and low profit?
Yes. High COGS, discounts, shipping, fees or weak product margins can absorb the result even when ROAS appears strong.