TikTok ads SOP · Unit economics

SOP: Calculate break-even ROAS

Goal: Know the minimum ROAS.

  1. 1Take price
  2. 2Divide by contribution margin
  3. 3That's break-even ROAS
  4. 4Add buffer for returns
  5. 5Share with media buyer
KPI: Contribution marginKPI: Break-even ROASKPI: AOV

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