From ROAS to ROMI: Why 2025 Marketing Teams Are Rethinking Attribution
- Team Adtitude Media
- Jun 9
- 3 min read
Introduction
For years, ROAS (Return on Ad Spend) has been the holy grail for marketers—simple, direct, and seemingly effective. But in 2025, performance marketing teams are shifting gears. They’re swapping ROAS for ROMI (Return on Marketing Investment)—a more comprehensive, strategic view of marketing’s impact.
Why? Because the modern buyer journey is non-linear, media spends are fragmented, and attribution isn’t as clear-cut anymore. As zero-click platforms, influencer touchpoints, and dark social channels grow, the limitations of ROAS are glaring.
Let’s break down why ROAS is no longer enough—and how ROMI gives marketing leaders a clearer, boardroom-ready picture.
ROAS vs ROMI: What’s the Real Difference?
Metric | ROAS | ROMI |
Formula | Revenue / Ad Spend | (Revenue – Total Marketing Cost) / Total Marketing Cost |
Focus | Ad-level performance | Total marketing impact (ads + strategy + tools + team) |
Timeframe | Short-term (e.g. campaign window) | Medium to long-term (e.g. quarterly, annual) |
Ideal for | Campaign optimization | Budgeting, forecasting, business decisions |
Why ROAS Is Falling Short in 2025
Blurry Attribution Paths
With TikTok, WhatsApp, influencer reels, and YouTube Shorts driving consideration, many conversions are influenced long before a click.
Media Budget ≠ Total Spend
ROAS doesn’t account for creative costs, strategy hours, influencer fees, or CRM tools—ROMI does.
Dark Social & Zero-Click Platforms
Platforms like Instagram DMs or WhatsApp may influence sales without generating direct clicks. ROAS sees nothing. ROMI factors in all activity.
Vanity vs Value
High ROAS can still mean low profit. ROMI, on the other hand, centres profitability and return after accounting for real costs.
Why ROMI Is Gaining Ground
Exec-Ready Metric: ROMI translates to business language—profit, margins, ROI—not just clicks and CPMs.
Better Budget Justification: Helps CMOs justify team headcount, tech stacks, and cross-channel investments.
Optimizes Beyond Paid Media: Allows marketers to analyse the value of organic, email, PR, and influencer spend too.
How Teams Are Calculating ROMI in 2025
Modern marketing teams are building integrated dashboards using:
GA4 and CRM Tools (for revenue & touchpoint data)
Media spend (Meta, Google, LinkedIn, etc.)
Operational costs (agency fees, team salaries, tech stack)
ROMI = (Attributed Revenue – Total Marketing Investment) / Total Marketing Investment
They’re syncing performance data with financials—not just ad dashboards.
Action Plan for Teams
Step 1: Audit all marketing costs – not just paid ads
Step 2: Build cross-channel attribution logic (e.g., data studio, GA4, Triple Whale, or Rocker box)
Step 3: Report ROMI quarterly, not just ROAS weekly
Step 4: Align with finance teams for deeper business impact.
1: What’s one hidden cost in your marketing you’ve never factored into your ROAS?A: Many marketers forget about recurring software costs, agency retainers, and influencer barter deals. These dilute ROAS but are accounted for in ROMI.
Q2: Can a campaign with low ROAS still have a positive ROMI?A: Yes. For instance, if the campaign-built email lists or LTV-driving audiences, its long-term ROMI may still be profitable, even if short-term ROAS looks poor.
Q3: How can you start measuring ROMI if you don’t have fancy tools?A: Start with a spreadsheet. Track total marketing spend (media + team + tools) and compare it to attributed revenue from all channels. It’s messy at first, but eye-opening.
Q4: Is this shift from ROAS to ROMI relevant for small businesses too?A: Absolutely. Even for a ₹50,000/month marketing budget, knowing whether your entire marketing engine is profitable is more useful than knowing just your Facebook ROAS.
Final Thought
ROAS tells you if your ads are working. ROMI tells you if your entire marketing strategy is worth it. In 2025, the real winners are moving from media performance managers to marketing profit leaders.
Comments