Process

Plan it, read it, then decide whether it pays

The order matters: a profit number means little until you know whether the plan reached enough people and the creative earned their attention.

  1. Size the plan

    Before launch, work out what a budget buys at a given CPM and how many people it reaches, how often. A plan that reaches too few people too many times spends its budget before the first click.

  2. Read the creative and the traffic

    Once it runs, CTR shows whether the ad earns attention and CPC shows what that attention costs. A low CTR points at the creative; a high CPC alongside a healthy CTR usually points at the auction or the targeting.

  3. Judge the outcome

    CPA is what each customer costs, ROAS is the revenue each ad dollar returns, and POAS is the profit after product costs. A campaign can show a healthy ROAS and still lose money, which is why POAS comes last.

  4. Bring visitors back

    Size the retargeting audience your traffic builds, the budget to reach it at a sensible frequency, and what it could return.

Frequently asked questions

  • What is a good ROAS?

    One above your break-even point, which depends on your margin. Break-even ROAS is 1 divided by your gross margin: at a 40% margin, every ad dollar has to bring back $2.50 in revenue before the campaign makes any profit.

    Find your break-even ROAS →
  • What is the difference between ROAS and POAS?

    ROAS divides revenue by ad spend. POAS divides gross profit — revenue minus the cost of the goods sold — by ad spend, so a POAS above 1 means the ads paid for themselves after product costs. Two campaigns with the same ROAS can earn very different profit if their products carry different margins.

    Calculate your POAS →
  • How do I calculate CPM?

    Divide the cost by the number of impressions and multiply by 1,000. $500 for 200,000 impressions is a $2.50 CPM. Run it the other way to see how many impressions a budget will buy.

    Calculate CPM →
  • How often should people see my ad?

    Often enough to be remembered, not so often that response falls away. Watch frequency alongside click-through rate: when frequency climbs and CTR drops, the audience has seen the creative enough and it is time to refresh it.

    Plan reach and frequency →
  • What is a good click-through rate?

    It depends on the platform, format and placement — search ads typically earn far higher click-through rates than social or display ads. Your own account history is the most useful comparison; the CTR calculator lists typical ranges by placement.

    Calculate your CTR →
  • Why do my ad platform results not match my analytics?

    Every platform reports the conversions it can see and takes the credit for them, while browsers hide more of those conversions each year. Server-side conversion tracking closes much of the gap, and an attribution model settles which channel gets the credit.

    See conversion tracking services →
Work With Us

Know which number to move, and how.

Book a call and we’ll read your account’s CPM, CTR, CPA and ROAS together — and show you which one is costing you the most.