THE PROFIT-TO-ACQUISITION RATIO: HOW TO SET REALISTIC TARGETS WHEN STAKEHOLDERS HAVE UNREALISTIC EXPECTATIONS

Summary from the TLDR Marketing newsletter

The Profit-to-Acquisition Ratio helps set realistic targets based on real unit economics and clear tradeoffs. It starts by calculating breakeven ROAS or CPA from profit margin. The stakeholder or client can then choose how much profit to reinvest, which is a business decision more than a PPC decision. A 50% profit reinvestment is a good starting place for balanced growth.