roas vs roi


ROAS vs ROI: How to maximize your online store’s profits?


Dóra Gergely-Gyuris

3 min read

September 2, 2021

We can all agree that the ultimate goal of a business is to maximize profit. Plain and simple. 

When you are an eRetailer and most of your income comes from your webshop, you can easily import your transaction revenue data into Google Ads to better understand your campaign performance in real-time and optimize your campaigns, thus maximizing your profits. 

Value-based bidding has been in our lives for quite a while now, but after the ecommerce revolutions that 2020 brought, collecting and leveraging your data is more important than ever. 

Most ecommerce brands already focus on ROAS, but in order to get the most out of your campaigns, take them to the next level and optimize for ROI. 

Before we dive into the good stuff, let’s take a step back and understand what value-based bidding is. 

Simply put, it is what it says it is: value-based bidding drives the most revenue from your campaigns. 

When you optimize for conversion, you might get loads of transactions coming from products that sell easily – in most cases, the cheaper ones. Optimizing for value, you get the most revenue from the given daily budget.

ROAS & ROI, know the difference

ROAS = Return on Ad Spend. The quick formula would be: conversion value divided by cost. If you have ecommerce tracking implemented, you are ready to go. 

Is it the best option, though? 

ROI = Return on Investment. It’s more complicated to implement but worth the effort. ROI takes into consideration not only your revenue but also your profit margin. 

Having a high ROAS on a campaign might sound great, but if you want to maximize profit in your business, your main focus should be ROI in performance campaigns.

Let’s see an example! 

Let’s say you have two campaigns (one for vacuum cleaners and one for washing machines, both have a conversion value of €50,000. vacuum cleaners spent €6,000, washing machines spent €10,000. Based on this information, you could say that the vacuum cleaner campaign performs better. However, it would be too soon to pause the washing machine campaign just yet.

You learn that the profit margin for vacuum cleaners is 25% (net profit: €12,500), while for washing machines is 50% (net profit: €25,000). This means that the campaign for vacuum cleaners had an ROI of 2.1 and washing machines an ROI of 2.5. 

This means that the washing machine campaign performs better. That is where you should maximize spending first.

Be more specific

The journey to digital maturity can be challenging, but understanding your margin on a product level and being able to sync it to Google Ads will blow up your campaigns. 

I have seen many cases where a business knew the overall margin of their online store, and even recognized their margin on a product category level, but being aware of this is not enough: you have to start using profit data on a granular level. Once you are able to feed your data into Google Ads on a product level, you will better understand where to allocate the big bucks, and which campaign is a money pit.

Let’s get technical

It all sounds great on paper, but how to put it into practice?  Currently, there are two ways to import profit data into Google Ads: 

A: Conversion tag with profit as conversion value

Synchronize profit data in real-time. Implement profit data (product value x product margin) the same way as you do with transaction data in Google Ads with the conversion tag. 

B: Offline conversion tracking

Import the profit data into Google Ads through offline conversion tracking post-purchase.

Offline conversion tracking is a great tool for service-based businesses to ensure lead quality. For example, a car dealership tracks test drive bookings online as their main conversions, but they can simply tie back further conversions, from actual test drives to purchases, from their CRM into Google Ads. 

When it comes to online stores, you can capitalize on offline conversion tracking to sync back product profit data to Google Ads. 

Retrieve the GCLID from the converted click and send it back to Google Ads with the profit value. Use an automated feed or a supported integration to synchronize the data, and do it preferably at least once a day.

Now that you track purchases with profit data as conversions, you can optimize your campaigns towards them. 

Once you understand and use your data correctly, you can maximize the profit that you can gain through the paid channels. 

Need help to shift to ROI based optimization?

Get in touch:

The author(s)

Dóra Gergely-Gyuris

E-commerce PPC Expert

Share on

More Articles

This story is brought to you by Mito Performance

We work in four business units, all sharing the same DNA, but doing a lot of different and exciting stuff.

Mito Weekly

It started out as an in-house circulation of the most interesting links of a week and turned into Mito's weekly newsletter of inspiration and knowledge for all. You can sign up, too.

Emese Bódi

Mesi is searching for minds and souls, loves a good CV and to chat with new people. Go ahead and find out!

Apply now!


Kosárlabda szabályok

A kosárlabda csapatok 5 fős felállásban játszanak. A nevezett csapatokat csoportokba osztjuk, a sorsolást a tornát megelőző héten minden csapat részére kiküldjük. A mérkőzéseket hivatalos játékvezető vezeti. A mérkőzések egy pályán zajlanak. A csoportok első két helyezettje az egyenes kieséses szakaszba kvalifikálja magát. Az egyenes kiesés szakaszban a csoportmérkőzések során első helyezett csapatok a másik csoport második helyezettjével játszanak, ezt követően a vesztesek a harmadik helyért mérkőznek meg egymással, majd a győztesek vívják a döntőt.

Röplabda szabályok

Csapatlétszám: 6 fő max. 2 cserejátékossal
A játék időtartama:
  • A mérkőzés egy csapat által nyert egy játszmáig tart. 
  • A játszmát az a csapat nyeri, amelyik előbb ér el 25 pontot legalább 2 pont előnnyel. 24-24-es egyenlőség esetén a játszma addig folytatódik, amíg valamelyik csapat el nem éri a két pont különbséget. 
  • Mérkőzésidő max. 20 perc, ha ezen belül a fentiek alapján nem dől el a meccs, a 20 perc mérkőzésidő leteltével előnyben levő csapat nyeri a mérkőzést.
A csapat létszáma a pályán nem csökkenhet 6 fő alá. Azt a csapatot, amelyik nem tud az összetételi előírásnak megfelelő 6 főt a pályára állítani, a játékvezető “hiányos”-nak nyilvánítja.

Labdarúgás szabályok

Csapatlétszám: 5+1 fő.

Játékidő: 2×10 perc (szünet nélkül térfélcserével)

A mérkőzéseket 3×2 méteres kapukra játsszuk.

  • A mérkőzéseket a kispályás labdarúgás szabályai szerint bonyolítjuk le.
  • A mérkőzéseken csak hernyótalpas, terem- vagy edzőcipőben lehet szerepelni, fém, vagy gumi stoplis cipő használata szigorúan tilos! 
  • Ha bármelyik csapat létszáma a kiállítások, sérülések következtében 3+1 fő alá csökken, a mérkőzést be kell szüntetni. 

Introducing Nokia to website performance measurement through page speed measurement

Business background

Page speed has become an important factor for website owners and SEOs since Google began focusing more and more on user experience factors. If companies don’t adapt to this new mindset, they will lose their organic power.

Nokia has experienced an extensive page load time on most of its pages, but lacked proper measurable information about the performance of the website. It is challenging to adapt site-wise technical modifications without understanding what is really behind the curtain.

Our solution

Mito introduced a multifactor, multi locational-targeting page speed measurement and reporting system across different devices.

Our focus was to develop a measurement system from scratch that is able to report on different page speed KPIs so we can better understand what additional analyses are needed to increase the pages’ performance. We did not only focus on a page level measurement, but also grouped pages to page types that assists us in making more educated assumptions.

We paid attention to location modularity in order to extend the number of analysed locations to additional countries by adding new Virtual Machines to our framework.

We are able to measure different KPIs on both mobile and desktop so we can see how the site performance is realized across devices.

Our measurement system and dashboard provided us insights on what type of elements of the different page types might cause low speed performance and it helped us to further analyse the loading curve, just as the opportunities in Google PageSpeed Insights recommendations for the different page types.


We set up the measurement system and the dashboard that reports on website performance and opportunities.

Through properly tracking the page speed improvements, Nokia becomes a more powerful organic participant in the telco market in Google search, while they provide a better user experience for their visitors.

End to end measurement solution for Nokia

Nokia is an innovative global leader in 5G, networks and phones.

An international business of this size requires a comprehensive measurement strategy including responsible data collection, consistent management of tags and measurement codes, personalized website tracking and purposeful conversion rate optimization (CRO).

We kicked off Analytics projects from January, 2020, beginning with extensive Google Tag Manager and Google Analytics audits. Besides inspecting the different system settings, we also optimized the measurement and pixel implementation processes within Nokia in order to increase efficiency and reduce implementation periods.

After the key adjustments and process harmonization, we have moved forward and started to work on the website and landing pages’ efficiency, including several conversion rate optimization tasks such as heatmap analysis and A/B testing.


Nokia is receiving continuous support from our analytics team to ensure the client’s measurement and data is reliable. Due to streamlined processes, implementation periods are shorter and we eliminated unnecessary website tracking codes which cause longer loading times.

Nokia Allwhere - Private Wireless - Global digital media campaign planning & execution

Building brand awareness and creating demand for Nokia Private Industrial Wireless in new vertical markets

Nokia launched a digital campaign to educate the market that their industrial-focused LTE solutions are the key in accelerating the ultimate benefits of digital transformation and realization of the fourth industrial revolution.

The goal: to build brand awareness and create demand for Nokia private Industrial Wireless solutions in new vertical markets, especially infrastructure or asset-heavy industries where digitization has been mostly restricted to point solutions without general network connectivity.

Our approach

We’ve developed a multi-touch global digital media campaign, which covered the entire user journey of business leaders, from education to making a business decision.

Our main goal was to make Nokia visible on a large scale through automated solutions and smart targeting to reach people when they are reading, talking, learning about or searching for private wireless networks.

To archive this, we’ve utilized the combination of digital media platforms, including industry specific content sponsorships, social media ads, paid search, programmatic hyperlocal and Digital out-of-home ads in front of target company HQs. We’ve made sure that when our key audience is browsing the web, using social media on their phones or just walking outside of their offices, they see a relevant Nokia ad.


The campaign has reached over 80 000 business decision makers and influencers in 3500 target companies, across 5 industry verticals globally.

Private wireless solution specific brand search volume increased by 70% during the campaign period (YoY). In Q2 and Q3 2020, Nokia Enterprise had a double digit year-on-year growth in net sales and new customers.

Emese Bódi

Mesi is searching for minds and souls, loves a good CV and to chat with new people. Go ahead and find out!

Apply now!


Flóra Hantos

Flóra is searching for minds and souls, loves a good CV and to chat with new people. Go ahead and find out!

Apply now!


Emese Bódi

Mesi is searching for minds and souls, loves a good CV and to chat with new people. Go ahead and find out!

Apply now!


Emese Bódi

Mesi is searching for minds and souls, loves a good CV and to chat with new people. Go ahead and find out!

Apply now!


Emese Bódi

Mesi is searching for minds and souls, loves a good CV and to chat with new people. Go ahead and find out!

Apply now!


Write us!

Write us!