Thursday, March 5, 2026

Use ROMS (Return on Marketing Spend) Not ROAS (Return on Ad Spend)

TL;DR ROMS (Return on Total Marketing Spend) is the single most important KPI in digital and performance marketing. ROMS = Revenue ÷ Total Marketing Cost (includes all fees, content, internal labor, tools). ROMS can also be inverted to show marketing cost as % of sales. ROAS is incomplete because it ignores critical costs and [...]

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