GROWTH NOTE / YOUSSEF GHORBEL
ROAS is a signal. Profit is the decision.
An advertising ratio cannot tell the full story of your business.
Start with the contribution.
ROAS compares attributed revenue with advertising spend. It does not, by itself, subtract product costs, fulfillment, payment fees, returns or overhead. A higher ratio may still sit inside an unprofitable operation.
Use consistent definitions.
Separate placed, confirmed and delivered orders when cash on delivery is involved. Compare periods using the same attribution window and revenue definition. Include expected returns and failed delivery costs in the unit economics.
Choose the next bottleneck.
Review contribution per order, conversion rate, AOV and acquisition cost together. The next move could be improving the offer or checkout rather than increasing ad spend. Diagnose the constraint before scaling.
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