Metrice

CPM - Cost per 1000 impressions ( you want this dollar amount to be as low as
possible )
Unique CTR Link Click : The percentage of people who see your advert and then click
through to the site/funnel ( you want this percentage to be as high as possible -
Ideally 2% and above )
CPC - Cost per click ( you want this to be as low as posible - ideally under $1 for
Ecomm )
CPP - Cost per purchase
ROAS - return on ad spend ( you want this decimal number to be as high as
possbile )

Metrice pe care trebuie sa le inteleg

Breakeven ROAS : This refers to the ROAS at which you / the clinet is breaking even
after taking into account COGS ( cost of goods sold )
Formula : Sale price / net profit = Breakeven ROAS
Sa zicem ca un client cumpara un produs de $100 / 65 = 1,5384 ; Breakeven ROAS =
1.54
Breakeven ROAS trebuie sa fie intre 1-1,7

AOV - Average order value. This refers to what the average amount 1 customer spends
per order they make.
WCR - Website conversion rate. You want this percentage to be as high as possible (
ideally above 2% for Ecomm brands )

3 campanii

cold testing - testam, interest, small budget per day, audiente lookalike
Cold - duplicate cold testing si vedem campanii castigatoare si le scalam
retargeting - VC , ADC , IC, PY

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AOV - Average order value

costul per medie a comenzii

ex : trebuie sa impart banii pe care i-am facut din comenzi la numarul de comenzi.

Ca sa calculezi break even ROAS

1. Find your break even point ( bep )

BEP = Selling price - cost of goods - shipping price.

Ex :

Selling t-shirts = $80

Cost of goods = $30
Shipping cost = $5
BEP = $45

Daca vreau sa vand un tricou la 80 de dolari costurile totale sunt de 35$

2. Find profit margin

BEP AKA PRofit ( profit margin ) / selling price x 100 = profit margin %

ex :

$45/$80 = 0,562x100 = 56,2 % profit margin.

The lower your margin the higher ROAS you need.

3. Find BE / ROAS

Cum se calculeaza ROAS

Website purchases conversion value * divided * by total amount spent

Adica
Totalul de vanzari pe care-l ai impartit la suma pe care ai cheltuit-o in reclame.

Ex :

If you sell 5 t-shirts

Total sales = $80x5 = $400

Total spent on ads = $150
ROAS = $400/$150 = 2.6

Higher ROAS = more profitable you are

BE/ROAS ( break even roas ) = Selling price / BEP

adica : $80/$45 = 1.77

Ads performing below 1.77 is NOT profitable - kill those

ds above 1.77 are profitable - keep

Side note ROAS hitting 1.77 ( breaking even is not a bad thing = customers for free
! ) - Keep if you understand your back-end process

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Sell product : 600

COGS - 239
Shipping - 20 lei
BEP - 341

600-239-20

341/600x100 = 0,56x100 = 56,8 profit margin

1.75 breakeven roas

Ce i peste 1.75 e bun, lasam,

Ce i sub 1.75 oprim campanii.