Why most Revenue / Cost based metrics have a distorted reality field.
💵 TAX – most business track the gross total of a transaction in Google Analytics or the ad platforms – but there is still the thing called SALES TAX and it’s usually significant around 20%
🎰 MARGINS – unless you sell digital products, all items sold have gathered a block of costs until they are ready for selling. You need to deduct that from the revenue as well – and digital products have initial costs as well
🧱 FIXED COSTS – Well, your team, your agency are not up for non-profit work for you, aren’t they? So you need at least on a monthly based break down and attribute these costs to your campaigns
⊜ Now we have a baseline you can use with your ad spend – how does your ROAS now look like?
I post my analytics & data thoughts every morning. Don’t miss the good ones and just follow me. I promise I always follow back.