Scale against profit, not against a ratio

ROAS is a ratio, and ratios flatter small numbers. The job is not to protect a number in an interface — it is to grow profit without crossing the line where growth stops paying.

That line is your break-even ROAS, set by your margin. Above it, more spend is more profit even as the ratio drifts down. Below it, a beautiful ratio on tiny volume is a hobby.

What this changes

• We ask for your margin before we set any target, and we will keep asking until we have a real number.
• We expect ROAS to soften slightly as spend grows. Cheap demand gets harvested first.
• We report against your break-even, not against an industry figure someone read on a forum.

Back to all seven.