knowing if it worked.
What is a good ROAS for a Kuwait brand?
the short answer.
There is no universal number. A good ROAS is one that clears your break-even, which depends on your margin. If 40% of your price is gross margin, you break even at 2.5×. A 3× is healthy for that brand and a disaster for one running a 10% margin.
break-even first, benchmark never.
Break-even ROAS is 1 divided by your gross margin. At a 40% margin you need 2.5× just to stand still. At a 25% margin you need 4×. Anyone quoting a target ROAS without asking your margin is guessing.
count the costs that ads do not show you.
Platform ROAS is revenue divided by ad spend. It ignores delivery, packaging, payment fees, returns and the cost of the product itself. In Kuwait, delivery alone can move a profitable order into a loss on small baskets.
the number that actually matters.
Contribution per order after every variable cost, multiplied by orders, minus ad spend. If that is positive and growing, the campaign is working, whatever the ROAS column says.
- Calculate your break-even ROAS before you set a target.
- Add delivery and payment fees to your cost per order.
- Judge new-customer campaigns and returning-customer campaigns separately.
- Watch the trend over weeks, not the number on a single day.
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