Video 1 - The KPI More Important than ROAS

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Most marketers and agencies focus on the KPI called ROAS or Return On Ad Spend.

ROAS tells us how much revenue has been generated for every $1 of ad spend. For example, if we can make $5 for every $1 we spend on a campaign…Our ROAS is 5x.

Ultimately, ROAS is used to evaluate how effective each campaign has performed. However, we have found that most businesses pull their desired ROAS out of thin air!

A very important KPI that most agencies miss when working with eComm businesses is called Break Even Return On Ad Spend or BEROAS.

Break-Even Return On Ad Spend is crucial as it tells us exactly how much revenue our advertising campaigns need to bring to cover the cost of the product/service we are promoting.

Without knowing your BEROAS, companies can fall into a false sense of security and scale campaigns/ad sets when their initial costs are not being covered, leaving them with long-term cash flow issues.

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