What ROI, ROAS and CPA actually mean
ROI tells you overall profitability: how much return you get for every euro invested. ROAS measures ad spend efficiency – for example, a ROAS of 3x means every euro spent generates 3 euros in revenue. CPA is the cost of acquiring one customer. By tracking these three metrics, you'll know whether your campaign is profitable.
Why LTV changes everything
A SaaS customer paying €50/month for 24 months is far more valuable than a single €500 purchase. That's why a high CPA can still be profitable – as long as the customer's lifetime value covers acquisition costs many times over. Use the LTV multiplier above to see the long-term picture.
Platform-specific tips
Google Search works best for intent-based advertising – the customer is already searching for your product. Facebook and Instagram are ideal for visual B2C ads and broad targeting. LinkedIn is expensive but effective for reaching B2B decision-makers. TikTok is the platform for younger audiences and viral campaigns.
Most common mistakes
The most common mistake is focusing solely on CPC. A cheap click that doesn't convert costs more than an expensive click that leads to a sale. Another mistake is forgetting LTV – many campaigns look unprofitable in the short term but generate returns over time.
Next steps
Are you a freelancer? Calculate your ideal rate with our hourly rate calculator. Planning to start a business? Check the startup cost calculator. Also browse our marketing articles.