Ask for three numbers once
Product cost (as a share of the price, or per order), shipping per order and payment fees. Most clients know them, or can get them from their store in minutes. They rarely change from month to month.
Show profit next to ROAS
Estimated profit = Revenue − Costs of the sales − Ad spendKeep ROAS in the report: clients know it. Put the estimated profit and the break-even ROAS right next to it, so a 2.5× ROAS reads as “profitable, with room to scale” or “below break-even”, not as a number on its own.
Be clear that it’s an estimate
Ad platforms count the sales they influenced, and two platforms can count the same order. Say so in the report, and when you can, compare with the store’s own sales for the month.
Questions
How long does a report like this take?
Once the costs are set, it’s the time to export last month’s campaigns and import them. AdMargins builds the report from that, in the client’s language and with your branding on Business and Agency.
What if the client won’t share costs?
Use a reasonable estimate and label it, or show the break-even ROAS for a range of product costs. Profit with a stated assumption is more useful than ROAS alone.
Is this the client’s real profit?
It’s estimated campaign profit: based on what the ad platforms report and the costs entered. Fixed costs like salaries and rent aren’t in it.