The ROAS needed for advertising to pay for itself from the margin on sales.
ROAS mínimo = 1 ÷ MC%
What each letter means
- MC%: Contribution margin
An example
With MC% = 20%: Break-even ROAS = 5×.
The ROAS needed for advertising to pay for itself from the margin on sales.
With MC% = 20%: Break-even ROAS = 5×.