Setting a ROAS target from your margins, not from Twitter
The calculation playbook so your target reflects your P&L.
— Step 1: find break-even ROAS = 1 / gross margin. 40% margin → break-even 2.5x.
— Step 2: layer in target net profit. Want 20% net on ad-driven sales? Push target to ~3.0x.
— Step 3: account for blended vs last-click — set the target on blended (MER), the number that hits your bank.
— Step 4: subtract returns/refunds from revenue before you compute anything.
Break-even-by-margin basis: 30% margin needs 3.3x / 50% needs 2.0x / 70% needs 1.4x. MER = total revenue / total ad spend.
Read: '4x ROAS good, 2x bad' is meaningless without your margin. A 70%-margin brand prints at 2x; a 25%-margin one dies at 3x.
Pixel & Profit
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Setting a ROAS target from your margins, not from Twitter
Этот пост опубликован в Telegram-канале Pixel & Profit. Подписаться можно по ссылке: @pixelprofit_fb.