INSIGHT

Why platform ROAS and business reality can diverge

A practical performance-marketing note by Navdeep Kumar.

Google and Meta report revenue according to their attribution rules. That is useful, but it is not the same thing as incremental revenue or profit.

Business economics live outside the ad account

Gross margin, refunds, repeat purchase, sales-team close rate and operating costs can change whether a high reported ROAS is actually healthy.

Look for consistency across views

Compare platform data with analytics, backend orders or CRM outcomes. Differences do not automatically mean one system is wrong; they often reflect different attribution methods.

Use ROAS as a decision input

The best question is not “What is the true ROAS?” in isolation. It is “Do we have enough evidence that spending the next unit of budget is economically sensible?”

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