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ROI (Return on Investment) measures the overall profitability of your business decisions.
It answers the big-picture question: “Am I making more money than I’m spending overall?”
For example, if you invest in marketing, software, team salaries, and operations, ROI looks at whether the total revenue outweighs those total costs.
It’s a holistic metric that evaluates the health of your business strategy—not just your ads.
Formula:
ROI = (Net Profit ÷ Total Investment) × 100
ROAS (Return on Ad Spend) measures the efficiency of your ad campaigns specifically.
It answers the question: “For every $1 I spend on ads, how much revenue am I getting back?"
If you spend $500 on a Facebook ad campaign and generate $2,000 in sales, your ROAS is 4:1 (or 400%).
Formula:
ROAS = Revenue from Ads ÷ Ad Spend
ROAS shows immediate performance. It helps you understand which ads are driving revenue and where to allocate budget.
ROI shows long-term profitability. Even if your ads are performing well, your overall business can lose money if other costs aren’t managed.
Think of it this way: ROAS is the speedometer, ROI is the fuel gauge. You need both to know if you’re moving fast and moving sustainably.
At Hugh Digital Group, we don’t just chase clicks—we track what truly matters.
Our approach combines ROAS optimization (to maximize ad efficiency) with ROI strategy (to ensure long-term business growth). By balancing both metrics, we help you scale confidently, without burning through your budget.
Want to see how ROI and ROAS can transform your marketing strategy?
Contact Hugh Digital Group today and let’s map out your growth.
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