Discover your true Return on Ad Spend (ROAS). It's not enough to look at the gross revenue generated from your ads; you must also consider your profit margins. For example, if you earned $1,000 from an ad campaign and spent $250 on ads, it might appear that you have an ROAS of 400%. However, this figure can be misleading without accounting for your profit margins. If your profit margin is 50%, your actual ROAS is only 100%, resulting in a net profit of $250 after covering both the ad spend and the cost of goods sold.