Who it fits
Paid ad teams
How to use it
Use this when campaigns have clicks and orders but you are unsure whether to scale. It puts ad-platform metrics and actual profit in the same view.
- Align the attribution window; enter original revenue, ad spend, goods/fulfillment and platform costs.
- Enter impressions, sessions, clicks, orders and refund rate separately.
- Compare original and adjusted ROAS, CTR, CVR, CPA and contribution.
- Check omitted overhead and multi-day variation before changing the creative, offer or budget.
Checks before using
- Revenue is adjusted for refunds and cancellations
- CTR and CVR are analyzed separately
- Product and fulfillment costs are included
- Several days of data are available, not just one-day movement
Calculation and evaluation basis
CTR = clicks/impressions; CVR = orders/clicks; CPA = spend/orders; original ROAS = attributed revenue/spend; adjusted ROAS = revenue*(1-refund rate)/spend. Pre-ad contribution = adjusted revenue*(1-platform fee)-goods/fulfillment-other input costs. Ad contribution subtracts spend. Original break-even ROAS = original revenue/pre-ad contribution, only when contribution is positive. Maximum CPA = pre-ad contribution/orders. Zero denominators show N/A. Sessions are not impressions.
These notes support a first-pass decision. Before buying software, scaling ads, shipping goods, or handling tax matters, verify against platform dashboards, service contracts, official pricing pages, and professional advice.
Limits and assumptions
- No ad-platform API; manually align the attribution window and reporting period
- Goods and fulfillment costs remain incurred after refunds in this model
- Unentered payment fees and fixed overhead are excluded; results never guarantee ad returns
Highlights
- Connects ad spend to actual profit
- Includes refund-adjusted revenue
- Highlights break-even ROAS before scaling