Margins vs. ROAS in E-commerce Marketing
Автор: Andrey Kisselev
Загружено: 2026-01-06
Просмотров: 100
Описание:
Most e-commerce brands obsess over ROAS. Here's the problem: a high ROAS on a low-margin product can bankrupt you faster than a lower ROAS on high-margin products. Your advertising profitability isn't determined by ROAS—it's determined by margin.
In this video, I break down why margin is the real metric that matters, introduce the three types of margins every brand needs to understand (gross, contribution, net), and show you exactly how to apply this to your product portfolio.
*What You'll Learn:*
Why ROAS is misleading and how margins tell the real profitability story
The three margin types that determine if your ad spend is actually profitable (knee sleeves vs gym belt example)
How to identify which products are actually worth advertising
The critical difference between gross margin and contribution margin
Why net margin is the metric for long-term sustainability
How to restructure your product portfolio for advertising profitability
How to use data tools (like Timelively for Shopify) to track margins in real time
This is the framework that e-commerce leaders use to make product advertising decisions at scale. If you're managing multiple SKUs or product lines, this changes how you think about campaign profitability.
Need help growing your store with Google Ads? Reach out at https://addimarketing.com/contact
00:00 Intro
00:30 The ROAS Illusion
02:01 The Three Margins That Actually Matter
04:02 Why This Changes Everything
05:19 Speaking Profit Language
06:03 Implementation Strategy
06:47 Shopify Solution & Wrap up
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