Return on ad spend

How to read it

• The number means nothing without your margin: a 3x return can be comfortable profit in one store and a clear loss in another.
• Compare it with your own break-even point, not with an average you heard somewhere.
• The ad dashboard books an order's value when it is placed, not when it is received, so with cash on delivery the return rate comes off the real figure.

The common mistake

The common error is comparing ROAS between businesses with different margins, or using one target for every campaign. A store at a 50% margin breaks even near 2x; a store at 20% needs far more for the same point — the same number means two entirely different things.