How do you calculate a profitable ROAS?
Asked 4 years ago
So, I want to estimate or project my ROAS to ensure profitability and avoid loss. What is the best way to calculate this?
Kobe Baker
Monday, March 21, 2022
Optimizing your Return On Ad Spend (ROAS) is the most pleasing way to determine whether an ad justifies the money you invested.
To calculate the profitable ROAS averting any loss is pretty reasonably straight. Simply divide the number 1 by your average profit margin (Average order value-Average order cost) in percentage.
If this sounds confusing, you can divide your average order value by maximum CPA as an alternative.
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