Advertising glossary

What is Break-even ROAS?

Definition

Break-even ROAS is the return on ad spend where ad revenue exactly covers product costs and ad spend. Below it you lose money.

Break-even ROAS explained

It equals one divided by your margin before ads. Every campaign target should sit above it.

Formula

Break-even ROAS = 1 รท margin before ads

Example

A product with a 50% margin before ads has a break-even ROAS of 2.

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