How to report ad profit to clients, not just ROAS

Clients pay for growth, but they live on profit. A report that shows estimated profit after their costs, next to ROAS, answers the question they actually have: are the ads making money?

Check one client’s month

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Your result

Profit

$2,212.50

What’s left after every cost

ROAS

2.50×

Return on ad spend

Break-even ROAS

1.68×

Minimum ROAS to not lose money

Profit margin

19.67%

Profit as % of revenue kept

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Open in the full calculator

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 spend

Keep 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.