What each metric says
ROAS is the ratio between the revenue or conversion value attributed to advertising and the media spend. ROI looks at profit relative to a defined investment. These are not alternative numbers, and you need to state which costs and values went into each calculation.
If the conversion value sent to the system is not actual revenue but an estimated value of a lead, the metric should be named accordingly. Do not present it as collected sales turnover.
Example: a ROAS of 4 still needs a profit calculation
In a hypothetical example, media spend of 5,000 ILS brought attributed revenue of 20,000 ILS. The ROAS is 4. If after the cost of the product a 30% margin remains, 6,000 ILS is left before advertising; after the media, 1,000 ILS is left, before management, shipping, fees, returns and other costs.
In this narrow model only, the break-even ROAS against media cost is 1 divided by 0.30, about 3.33. This is not a full profit target for the business, because the other costs are not included. Use the same basis of revenue and costs, including consistent handling of VAT.
How to turn this into a budget decision
Our recommendation is to prepare a relevant margin for each product group, and to separate new customers from returning ones where possible. Returns and cancelled deals should affect the profit estimate. Revenue attributed in a platform does not prove that all of it was created thanks to the campaign.
In a lead business, connect the cost per inquiry to the close rate and the profit per deal. For example, a low CPL can be less worthwhile if there are almost no deals. Before raising the budget, check what happens to profit from the increment, and not only to the account's historical average.
Source and further reading
Facts about the platform are based on the linked source. The working recommendations and examples are our professional analysis. Checked on October 25, 2026.
Want to apply this in your business?
We'll look at your goals, data and where the business stands, and build a plan that fits.
See the relevant MEDIAK service ↖