Guide
True ROAS
ROAS is easy to report and easy to misread. True ROAS tightens the definition so the ratio reflects revenue you can actually keep before (and alongside) cost layers that affect cash.
Updated
Platform ROAS vs True ROAS
Ad platforms typically compute ROAS from attributed conversion value divided by spend. That value may ignore discounts, refunds, or how your store books revenue.
In TrackSignal, True ROAS uses net revenue after discounts and refunds, divided by advertising spend. Division by zero yields no ratio — we do not invent a number.
Where Profit ROAS fits
True ROAS still does not subtract COGS, shipping, or payment fees. Profit ROAS and Net Profit do. Use True ROAS to judge revenue efficiency of spend; use Net Profit and Profit Margin to judge whether the business made money.
Together, those metrics stop teams from scaling a campaign that “wins” on platform ROAS while losing money after costs.
Frequently asked questions
- How is True ROAS calculated in TrackSignal?
- True ROAS = Net Revenue ÷ Ad Spend, where Net Revenue is revenue after discounts and refunds. If ad spend is zero, the ratio is null.
- Should I stop looking at Google Ads ROAS?
- Platform ROAS is still useful inside the ad account. True ROAS and Net Profit are better for deciding whether spend created cash for the business.
Related guides
See real profit in TrackSignal
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