# Blog

#### Why Return on Ad Spend (ROAS) Bidding Kills Ecommerce Profit

29, Jan David Deppner

"Here's the math: $5 in sales ÷$1 in ad spend x 100% = 500% target ROAS" (Source: https://support.google.com/adwords/answer/6268637)

Before I explain why ROAS kills profit, you need to understand exactly what ROAS means in Google Ads. I have a complaint about...

#### Financial Models for Ecommerce Advertising

12, Jan David Deppner

Fundamentally, with pay-per-click advertising, the idea is to balance the cost per click that we’re willing to pay with the profit per click that we expect to achieve. As advertisers, we attempt to find the right level of spending that maximizes the business profit. And since every business is dif...

10, Dec David Deppner

In a word, “No!”

In two words, “Hell no!"

In eight words, “No, because of the law of diminishing returns."

Here’s why…

#### PPC Strategies to Boost Your Bottom Line

21, Apr David Deppner

Presented by David Deppner
Meet Magento New York, October 17, 2017

Competition for online advertising is driving up your costs, and it’s not going to get any easier. What can you do to improve your PPC advertising and get even more profitable? This presentation covers some common misconceptions th...

Would you rather have a 10% return on $100 or a 5% return on$1000?
\begin{align} 100 \times 10\%_{ROI} &= 10 \\ 1000 \times 5\%_{ROI} &= 50 \end{align}