ROAS vs ROI
ROAS measures gross revenue per ad dollar, while ROI accounts for all costs including product costs, overhead, and fulfillment. A campaign with 5× ROAS but 20% profit margins only returns $1 of profit per $1 spent (100% ROI). Always calculate profit-adjusted ROAS to understand true advertising profitability.
Improving ROAS
The fastest ROAS improvements come from eliminating waste: pause underperforming ad sets, tighten audience targeting, and improve landing page conversion rates. A landing page that converts at 4% instead of 2% doubles your ROAS without changing a single ad. Creative testing, bid optimization, and dayparting can add another 20-40% improvement.