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ROAS vs Margin: Break-Even ROAS, Profit per Keyword and a Scale / Hold / Cut Rule

Lesson 3 of 816 minLab

This lesson is part of the course

In this lesson

You turn attributed sales into ROAS, compare each keyword with the break-even ROAS its product margin allows, calculate the profit after ad spend and let a rule decide which keywords to scale, hold or cut.

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Lessons in this course

  1. Sponsored-Listing Auctions: Bid × Relevance, Ad Rank and Second-Price Cost per ClickLab15 min Locked
  2. Campaign Metrics by Keyword: Impressions, CTR, Cost per Click, Conversion Rate and CPALab16 min Locked
  3. ROAS vs Margin: Break-Even ROAS, Profit per Keyword and a Scale / Hold / Cut RuleLab16 min Locked
  4. Incrementality: Test vs Control Regions, Incremental Sales and iROAS vs Reported ROASLab16 min Locked
  5. Halo Sales and Cannibalisation: Related Products, Own-Brand Switching and Net Incremental ProfitLab15 min Locked
  6. Share of the Digital Shelf: Sponsored and Organic Positions on Page OneLab15 min Locked
  7. Budget Pacing: Daily Spend vs Plan, Projected Month-End Spend and Bid AdjustmentsLab16 min Locked
  8. Allocation & Dashboard: Diminishing Returns, the Next-Dollar Rule and a ChartLab18 min Locked