Most marketers optimize for ROAS
But ROAS can be misleading. Two products can show the same ROAS while having completely different profitability. Example: Product A Price: $100Cost: $80Profit: $20Ad spend: $20ROAS = 5xPOAS = 1x (break-even) Product B Price: $100Cost: $60Profit: $40Ad spend: $20ROAS = 5xPOAS = 2x Same ROAS. Very different profit. The takeaway: • ROAS measures revenue from […]
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