PLAIN-LANGUAGE DEFINITION
Break-even ROAS
In a simple order model, break-even ROAS is revenue divided by contribution before advertising.
IN PRACTICE
An example
Revenue 60 and variable costs 26 leave 34, giving break-even ROAS of about 1.76.
What this does not tell you
This model excludes fixed overhead and assumes the supplied costs and revenue are complete.
Use the term precisely
When you use this term in a brief or report, include the relevant source, scope and assumptions. An example explains the concept; it is not a benchmark or a promise of results.