Is Roas under %2 good if your profit is %20?
I know the sky is the rocket when it comes to marketing budget let’s say the marketing campaign target is to increase the sales and profit.
If profit per item is 15-20% and if ROAS is less than %2… Would you consider this campaign a successful campaign?
6 replies
Seller_amUAzjvL5uIzu
For me a 2% ROAS would be terrible(my net profit is abt 40%),at 2% for every £1 you spend sales are £2 so at 20% profit every £1 spent is earning you 40p profit .Just checked mine over the 8 yrs of running PPC ROAS is 25.45% ACOS is 3.93%.Every £1 I spend generates £25 sales and £12 profit.PPC only generates about 10% of my sales.
At 2% you are losing money.5% ROAS would be break even for you I would say your PPC bids are way too high.Are you sure your looking at 2% ROAS not 2% ACOS which would give dramatically different results.
