Digital marketing with ROI: ROAS, CAC, CTR and UTMs done right
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Paying for ads without measuring is donating to Google and Meta. Four metrics decide scale: ROAS, CAC, CTR and well-built UTMs.
Open ROAS calculator →1. ROAS
ROAS = revenue / ad spend. USD 1,000 → USD 4,000 = 4x.
- ROAS < 2: likely loss at normal margins.
- 3–5: healthy ecommerce.
- >5: scale.
ROAS ≠ profit. Subtract product cost and overhead.
2. CAC
CAC = total marketing + sales / new customers. Compare with LTV — healthy LTV/CAC ≥ 3.
3. CTR
- FB/IG feed: 1–2% normal, >3% great.
- Google Search: 3–5% competitive, >10% brand.
- Display: 0.05–0.1%.
Low CTR with reach = weak creative. High CTR + low conversion = weak landing.
4. UTM
utm_source: platform.utm_medium: type.utm_campaign: internal name.utm_content: creative variant.utm_term: keyword.
5. Common errors
- Cross-platform ROAS without funnel normalization.
- Last-click attribution overweights closers.
- Short conversion windows for high-ticket items.
- Using gross instead of net revenue.
6. Reporting
Revenue, spend, ROAS, CAC, LTV/CAC, payback. Payback < 12 months healthy.