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COGS: Why a 5X ROAS Doesn’t Tell the Whole Story
Your ads generated $10,000 in sales on $2,000 in ad spend. That’s a 5X ROAS—but how much money does your business actually keep?
In this episode of PPC with YRV Dynamics, Yousaf Yunes breaks down cost of goods sold (COGS), gross profit, and why strong advertising results don’t always translate into strong business profits.
We walk through a simple example: $10,000 in net sales, minus $4,000 in COGS, leaves $6,000 in gross profit. Subtract $2,000 in ad spend and a $2,000 agency retainer, and just $2,000 remains before any additional expenses.
You’ll learn:
What COGS means and why ad spend and…
The skinny
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