MARKETING
ROAS
Return On Ad Spend, the revenue generated per pound of ad spend, expressed as a multiple (e.g., 7.69x ROAS means £7.69 of revenue per £1 spent).
ROAS is a useful gross number but a misleading bottom-line one. It doesn't account for gross margin, fulfilment cost, or customer acquisition over time. A 4x ROAS on a 80%-margin digital product is a great month; a 4x ROAS on a 20%-margin physical product is loss-making.
We report ROAS alongside contribution margin and blended CAC so the picture is honest, not flattering. A high ROAS that's hiding bad margin isn't a result, it's a vanity.
Reference: Mai Rugs runs at 7.69x paid ROAS on £3,500/month. VMEP runs at 6.25x on £1,650/month Google Ads.
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