Your ROAS looks good, but profit doesn’t.
You spend more, the numbers seem stable, but results still feel off.
That’s because ROAS only shows one part of the picture.
It tells you how much revenue comes from ad spend, not how much you actually keep as profit.

• Total ad spend vs. total revenue
  Add up all ad platforms. Look at total spend compared to total store revenue, not just what Meta or Google show.
  This gives you a real view of your full marketing performance.
  Sometimes Meta looks down, but Google Search or Email makes up for it.
• Profit margins
  A 3x ROAS means nothing if your profit margin is 20 percent.
  Always connect your ad data to profit, not just revenue.
  If your margin is 25 percent, your break-even ROAS is 4.
  Anything above that earns money, anything below loses it.
• Break-even ROAS
  Know the minimum ROAS you need to cover all costs — product, shipping, fees, and marketing.
  Without it, you can’t make smart decisions.
  Example: if your margin is 30 percent, your break-even ROAS is 3.33.
  Below that, you’re losing money even if revenue looks fine.
• Target ROAS
  Set a target slightly above your break-even number.
  If your break-even is 3, aim for 3.5 to 4 depending on your goals.
  This becomes your benchmark for scaling or adjusting campaigns.
• Conversion rate
  If ROAS drops, check conversion rate first.
  Your traffic may be good, but your site or offer could be weaker than before.
  Review your product pages, messaging, and pricing against competitors.
• AOV (average order value)
  If AOV drops, ROAS can fall even when traffic and conversion stay stable.
  Review bundles, cross-sells, and upsells to increase average order size without raising ad spend.
• Returning customers
  Cold traffic often has lower ROAS, which is fine if repeat buyers are strong.
  Check your returning customer rate and lifetime value.
  Retention can turn an average ROAS into long-term profit.
• Attribution and tracking
  Each platform measures results differently.
  Compare total revenue divided by total ad spend to see your real blended ROAS.
  That’s the number that shows the full picture.
• Traffic quality
  If sales go down while clicks go up, your audience might not match your real buyers anymore.
  Check if your creatives and targeting attract people who are ready to buy, not just browse.
  

1. Calculate your break-even and target ROAS so you know your limits.

2. Track profit, not just ROAS. Add margins, AOV, and repeat rate to your reports.

3. Review performance across all channels weekly.

4. Check conversion rate and offers monthly to stay competitive.

5. Scale only when you’re consistently above your target ROAS.

When you read ROAS in context, it becomes a tool, not a trap.
You’ll make decisions based on clarity, not guesses.
If you want help calculating your break-even point and setting the right ROAS goals for your store, book a short strategy call.