Every business metric eventually reduces to one question: does the business model actually work? The LTV:CAC ratio is how you answer it with a number instead of a guess. I’ve seen businesses burning cash on acquisition while their founders swear the model is fine because their ads “look profitable.” They were measuring ROAS. They weren’t […]
TL;DR Ad attribution is the process of assigning credit for a sale or conversion to the specific ads, clicks, and marketing touchpoints that caused it. Without attribution, you’re spending money on ads and hoping they work. With attribution, you know which ads produced revenue and which ones burned budget. The six main attribution models (first-click, […]
TL;DR ROAS (return on ad spend) tells you how much revenue you earn for every dollar you spend on advertising. The formula is simple: ROAS = Revenue from Ads / Ad Spend. If you spend $1,000 on a Meta campaign and generate $4,000 in tracked revenue, your ROAS is 4x (or 400%). Most ecommerce brands […]
TL;DR ROAS measures gross revenue per dollar of ad spend; ROI measures net profit after all costs. They answer completely different questions. A campaign can show a strong 5x ROAS and still lose money once you subtract product costs, shipping, software fees, and overhead. ROAS isolates ad channel efficiency so you can compare creatives, audiences, […]
