Library · Traffic · How to run this
Set min ROAS from settled contribution
Min ROAS from settled contribution is settled AOV ÷ max CAC. Max CAC is contribution $ per order minus any profit floor. Platform ROAS on billed revenue is a different number — and a common lie.
Pair: Min ROAS from contribution on Traffic. Build contribution from lines on max CAC. Percent framing: AOV to max CPA.
How to read it
Type settled AOV, contribution $ per order, and floor (0 if none). Read min ROAS and max CAC. Cap bids at max CAC. If contribution cannot cover the floor, do not buy.
What not to do
Do not paste ad-account revenue. Do not treat 1.0× as safe when contribution is thin. Do not ignore MID headroom while ROAS looks green.
Related: Traffic, max CAC, blended CAC, lag-adjusted MER when refunds are still open.
Procedure
- Take settled AOV and contribution from the CAC waterfall.
- Put a profit floor if you need one.
- Read min ROAS.
- Cap bids at max CAC, not at a platform default.
Failure modes
- Using ad-account revenue in the numerator.
- Skipping refunds in contribution.
- Targeting 1.0 ROAS when contribution is thin.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Min ROAS
- Settled AOV ÷ max CAC. Ad-account ROAS on billed revenue is a different number.
Work with us — We run this job on your accounts. Services
FAQ
- Can I use Ads Manager revenue as AOV?
- No. Type settled AOV. Ad-account revenue is a different number.
- Is min ROAS the same as max CAC?
- Related. Max CAC is contribution minus floor. Min ROAS is settled AOV ÷ that max CAC.
- Why not target 1.0× ROAS?
- If contribution is thinner than AOV, 1.0× buys revenue and loses cash.