If you’re bragging about a 4.2x ROAS in your ad dashboard — take a step back. ROAS might make you feel good, but it’s not telling you the full story. In fact, it could be misleading you straight into unprofitability.
Because ROAS is inflated. And it’s hurting your decisions.
ROAS only shows revenue generated per dollar spent on ads — inside the ad platform. What it doesn’t show:
The result? You’re optimizing based on revenue that’s not real. Profit gets left behind.
Let’s say you spend $10k on ads and generate $42k in revenue. 4.2x ROAS. Looks great, right?
But after:
You’re left with… $15k contribution margin. Subtract overhead and you’re barely breaking even — or worse.
Don’t just look at in-platform ad data. Look at total spend across all channels divided by total customers acquired. That’s your real CAC.
Total revenue ÷ total ad spend. Clean, easy, and accounts for blended performance.
What’s left after variable costs? That’s the real money you’re keeping. Build decisions around this — not fake ROAS.
If you’re scaling based on inflated ROAS, you’re not really scaling — you’re just spending.
DTC brands that last are obsessed with:
The ones that flame out? They chase ROAS and lose money on every sale.
We built Signal to replace inflated ad dashboards with actual clarity.
Your ads might be performing. But is your business?
👉 Try Signal and find out what’s really working.