In 2025, marketers are rethinking how they measure success. For years, Return on Ad Spend (ROAS) was the go-to metric to prove digital campaign efficiency. But as automation, AI-driven optimization and omnichannel experiences evolve, Return on Investment (ROI) is regaining attention. Businesses are realizing that profitability goes beyond ad clicks — it’s about sustainable value creation.
ROAS vs ROI 2025 is the focus keyphrase for this article.
According to the latest industry research, measuring only ad-efficiency metrics is no longer enough (Adjust, 2024; Terakeet, 2024). The truth? ROAS only tells part of the story. ROI – which factors total costs, lifetime value (LTV) and long-term outcomes – gives the fuller picture.
As Mr. Phalla Plang, Digital Marketing Specialist, explains:
“ROAS measures efficiency; ROI measures effectiveness. In 2025, the smartest marketers track both — but prioritise ROI when building sustainable growth.”
This article explores the myths and facts behind ROAS vs ROI, debunking outdated beliefs and offering actionable strategies for data-driven marketers.
Myth #1 → Fact → What To Do
Myth #1: “ROAS is the only metric that matters in digital advertising.”
Fact: ROAS focuses narrowly on ad spend efficiency, not overall business profitability.
ROAS tells you how much revenue you earn for every dollar spent on advertising, but it ignores indirect costs such as creative production, software tools and staff salaries. For example, a high ROAS may look impressive, but if backend costs slash margins, the actual ROI might be weak (Adjust, 2024).
What To Do:
- Use ROAS for short-term ad efficiency and ROI for long-term financial impact.
- Integrate data from CRM and finance systems to include total campaign costs.
- Use advanced attribution models and consider customer lifetime value (CLV) alongside ad performance (Upwork, 2024).
Myth #2 → Fact → What To Do
Myth #2: “ROI takes too long to measure — ROAS is more practical.”
Fact: Real-time ROI tracking is now possible thanks to AI analytics and predictive attribution.
While older models required weeks or months, in 2025, machine learning models can forecast ROI within hours by integrating ad data, sales systems and LTV models (Hurree Blog, 2025). ROI is no longer a delayed metric.
What To Do:
- Implement predictive ROI dashboards via platforms that combine ad spend, cost, revenue and retention data.
- Train marketing teams to interpret ROI forecasts, not just ROAS ratios.
- Measure ROI at channel, campaign and customer-segment levels for precision.
Myth #3 → Fact → What To Do
Myth #3: “A higher ROAS always means higher profit.”
Fact: A high ROAS can hide deeper inefficiencies in pricing, targeting or customer retention.
Marketers often celebrate high ROAS without analysing whether those sales came from one-time buyers or heavily discounted transactions. If acquisition costs are high and repeat rates are low, profit may still be marginal (Embryo, 2024).
What To Do:
- Focus on LTV-to-CAC ratio (Customer Lifetime Value vs Customer Acquisition Cost).
- Include retention and upsell metrics in ROI reporting.
- Automate reporting that correlates ROAS with net profit margin over time.
Myth #4 → Fact → What To Do
Myth #4: “ROI and ROAS compete — you have to choose one.”
Fact: The best marketers use both metrics for different stages of the funnel.
ROAS is great for measuring advertising channel performance; ROI is better for assessing overall business impact. When aligned, they give a 360° view of campaign health (Terakeet, 2024). For instance, a campaign may achieve a 400 % ROAS, yet its total ROI might be 150 % once retention and referral sales are factored in. Both are useful.
What To Do:
- Align media planners (ROAS focus) with finance teams (ROI focus).
- Use a unified data warehouse to merge cost, sales and engagement metrics.
- Define clear goals per metric: ROAS for campaign tuning, ROI for investment scaling.
Integrating the Facts
In 2025, performance marketing is merging into predictive profitability management. Marketers who integrate ROAS and ROI insights are better positioned to scale efficiently. New AI-driven platforms and attribution models increasingly optimise toward both short-term efficiency (ROAS) and long-term profitability (ROI) (Hurree Blog, 2025; Adjust, 2024).
When these metrics are combined with LTV, churn and retention analysis, brands gain a true understanding of marketing value — not just “ad performance”.
Measurement & Proof
To measure the relationship between ROAS and ROI effectively:
- Track cross-channel data: use tools like Looker, Power BI or custom dashboards.
- Include all cost factors: advertising, creative, tech stack, team resources.
- Adopt ROI-driven KPIs: profit margin, payback period, LTV/CAC ratio.
- Use predictive analytics and modelling to forecast ROI.
- Run incremental lift tests: compare ad-exposed groups to control groups to validate true ROI.
Research shows marketers who move beyond ROAS toward ROI-driven models see stronger alignment with business outcomes and increased trust from finance teams (McKinsey, 2025; Camphouse, 2025).
Future Signals
The future of marketing metrics is contextual and predictive. Instead of treating ROAS and ROI as isolated, marketers are building profit intelligence models that automatically connect marketing performance to financial outcomes. Emerging trends include:
- AI-assisted attribution modelling that blends offline and online ROI (McKinsey, 2025).
- Profit-based bidding algorithms replacing click-based optimisation.
- Dynamic LTV forecasting using real-time data enrichment.
- Zero-party data integration for personalised ROI modelling ethically and effectively.
As one McKinsey insight notes: ROI may soon become the primary metric across digital marketing, with ROAS serving as a tactical tool rather than the sole success measure (Camphouse, 2025).
Key Takeaways
- ROAS measures efficiency; ROI measures profitability.
- AI and automation now make ROI measurable in real time.
- High ROAS doesn’t always equal business growth.
- Use ROAS for media optimisation and ROI for strategy.
- Integrated analytics ensures a balance between short-term and long-term wins.
- Future-ready marketers focus on ROI-led growth forecasting.
More Read
References
Adjust. (2024). What is return on ad spend (ROAS)? https://www.adjust.com/glossary/roas-definition/
Camphouse. (2025, June 21). McKinsey warns of growing divide between CEOs and CMOs. https://camphouse.io/news/ceo-cmo-misalignment-report
Embryo. (2024, March 13). ROI vs ROAS in PPC marketing. https://embryo.com/blog/roi-vs-roas/
Hurree Blog. (2025, May 1). Measuring the ROI of AI in Marketing: Key Metrics and Strategies for Marketers. https://blog.hurree.co/measuring-the-roi-of-ai-in-marketing-key-metrics-and-strategies-for-marketers
Terakeet. (2024, July 19). What is ROAS? Calculating Return on Advertising Spend. https://terakeet.com/blog/what-is-roas/
