Question

Topic: Advertising/PR

Is $1.9 Return On Ad Spend Low?

Posted by amazonus on 7/18/2017 at 4:19 AM ET 50 Points
For an electronics brand Amazon business is a $1.9 ROAS low using AMG? It seems our client would need it to be $3.33 to break even, so in other words at $1.9, they are losing money...
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  • Posted by mgoodman on 7/18/2017 at 7:33 AM Accepted
    $1.90 seems low unless their variable profit percentage is unusually high. ROAS is calculated using gross revenue, so you have to factor in their gross margin (or variable profit percentage) if you want to really understand whether or not they are losing (or making) money.
  • Posted by Shelley Ryan on 8/1/2017 at 6:54 PM Moderator
    Hi Everyone,

    I am closing this question since there hasn't been much recent activity.

    Thanks for participating!

    Shelley
    MarketingProfs
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