Use Case

Calculate True ROAS

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Overview

What this means for operators

Platform-reported ROAS tells you revenue per ad dollar. True ROAS tells you profit per ad dollar — after subtracting COGS, shipping, returns, and variable costs. The gap between the two numbers determines whether you are scaling profitable campaigns or subsidizing losing ones. Most operators do not know the difference until they run the math manually.

Ad platforms report ROAS based on their own attribution models — which double-count conversions, ignore COGS, and miss the full cost picture. You are making budget decisions on incomplete data.

The problem

Ad platforms report ROAS based on their own attribution models — which double-count conversions, ignore COGS, and miss the full cost picture. You are making budget decisions on incomplete data.

What operators do today

Common workarounds that fall short

Trusting Google Ads or Meta Ads manager ROAS, which uses platform attribution and ignores COGS

Building manual spreadsheets to subtract costs from ad revenue — updated weekly at best

Using blended ROAS as a single number, which hides underperforming channels behind strong ones

Making budget allocation decisions on platform metrics that overcount conversions by 30-50%

Results you can expect

Measured outcomes from Fairview users

2.1x

average gap between platform-reported ROAS and true ROAS after all costs

15-25%

of ad budget reallocated after seeing true ROAS data for the first time

<1 hr

to see true ROAS by channel after connecting ad platforms and cost data

Features used

Powered by

Blended ROAS Dashboard Contribution Margin Tracker Ad Spend Optimizer

What operators say

"Google said our ROAS was 4.2x. Fairview said it was 1.3x after COGS and shipping. We had been scaling a campaign that was barely breaking even. The true ROAS view changed everything."

Lisa Huang

Director of Marketing, Drift & Co. (D2C home furnishings brand)

Explore more

Related use cases

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Try it yourself

See how Fairview handles calculate true roas

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FAQ

Frequently asked questions

True ROAS is profit (not revenue) divided by ad spend. It accounts for COGS, shipping, returns, and other variable costs that platform-reported ROAS ignores.
Fairview pulls ad spend from Google Ads and Meta Ads, revenue from Shopify or Stripe, and costs from QuickBooks or Xero. It calculates: (Revenue - COGS - Variable Costs) / Ad Spend = True ROAS.
Platforms attribute conversions using their own models. They count conversions they influenced (or think they influenced), leading to over-reporting. They also do not subtract costs — so a 4x platform ROAS might be a 1.2x true ROAS.
Yes. Fairview shows true ROAS by channel (Google Ads vs. Meta Ads vs. organic) so you can compare actual profitability across your marketing mix.

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