Business Math
The formula for ROAS.
What is Revenue ÷ Ad Spend?
Note: ROAS shows efficiency; audit confirms it translates to profit.
“We get lots of clicks, but leads are junk.”
What is audit the Search Terms report and negative keywords / tighten match types?
Note: “Let’s review your search terms and add negatives so you stop paying for irrelevant traffic.”
If a business is profitable and wants to scale, you recommend this strategy.
What is Fuel?
The audit focuses on this part of Google Ads.
What is account structure and campaign setup?
Instead of talking about clicks, ask about this metric tied to long-term success.
What is Lifetime Value?
A gym spends $2,000 on ads and gets 20 sign-ups. This metric equals $100.
What is CPA (Cost Per Acquisition)?
Note: Audit looks for ways to lower CPA without hurting lead quality.
“Tracking was set up years ago—we’re not sure what’s counted.”
What is audit conversion actions, GA4 linking, primary/secondary status, and deduplication?
Note: “We’ll validate conversion setup so your decisions are based on clean data.”
If ads are “burning money,” you recommend this strategy.
What is Fix?
Auditing campaigns can lower this metric without sacrificing quality leads.
What is CPA?
Note: CPA is how much it costs to acquire one customer. If it’s too high, the business feels like ads are burning money. But lowering CPA isn’t just about getting cheaper clicks—that often kills lead quality. The audit helps us find smarter ways to reduce CPA: tightening targeting, improving keyword match types, fixing conversion tracking, and optimizing bidding strategies. This way, we keep quality leads while making acquisition more cost-effective. That’s a win for the prospect and a perfect reason to book the audit.
When a prospect says, “We made $20k in sales,” respond by asking about this.
What is profit after costs?
Note: Revenue ≠ profit.
If ROAS is 5×, for every $1 spent on ads, the business earns this much in revenue.
What is $5?
“ROAS swings daily; we changed bids to Maximize Clicks.”
What is audit bid strategy alignment (Target ROAS/CPA), budgets, and conversion volume suitability?
Note: “We’ll align bidding to your goals and ensure enough conversions for stable optimization.”
The audit is the first step in this strategy when campaigns are inefficient.
What is Fix?
Auditing campaigns ensures they target customers who provide this long-term metric.
What is LTV (Lifetime Value)?
When a prospect says, “Our ads are burning money,” pivot to this offer.
What is an audit of their Google Ads account?
A member pays $50/month and stays 24 months. This is their lifetime value.
What is $1,200?
Note: Audit aligns campaigns to attract retention‑friendly customers.
“Brand searches dominate; competitors bid on our name.”
What is audit brand vs non‑brand segmentation, competitor campaigns, and brand exclusions?
Note: “We’ll separate brand/non‑brand, protect brand terms, and allocate budgets intelligently.”
The audit helps identify opportunities to double down on what’s working—this strategy.
What is Fuel?
Auditing campaigns helps confirm this ratio before scaling budgets.
What is ROAS?
Note: ROAS tells us how much revenue we earn for every dollar spent on ads. Formula: Revenue ÷ Ad Spend. A high ROAS looks great, but it doesn’t guarantee profitability. Why? Because margins matter—if product costs eat most of that revenue, the business might still struggle. And structure matters—ROAS could be inflated by branded searches or one strong campaign while others waste money. Before scaling budgets, we audit the account to confirm that ROAS is sustainable, margins are healthy, and the structure supports growth. That’s how we protect the client’s bottom line.
When a prospect says, “We can’t afford $100 CPA,” reframe using this concept.
What is LTV?
Note: This is where lifetime value changes the game. Sure, $100 feels expensive if you only look at the first $50 payment. But if the average customer stays 24 months, that’s $1,200 in revenue. Suddenly, $100 to acquire $1,200 looks like a smart investment. The audit helps confirm retention and margins, and we can look for ways to lower CPA while keeping lead quality high. That’s the conversation that earns trust.
A coffee maker sells for $200. If COGS is $120 and ad spend is $4,000 for 100 units, profit equals this amount.
What is $4,000?
Note:
Revenue = $200 × 100 units = $20,000
COGS = $120 × 100 units = $12,000
Ad spend = $4,000
Profit = Revenue − COGS − Ad Spend =
$20,000 − $12,000 − $4,000 = $4,000.
“We launched Performance Max; search looks random and Shopping feed is messy.”
What is audit PMax structure (asset groups, audience signals, brand exclusions) and Merchant Center feed quality/listing groups?
Note: "We’ll tune PMax inputs and fix feed quality so automation targets profitable queries.”
These two words describe Logical Position’s role when using Fuel or Fix strategies.
What is Growth Partner?
Auditing campaigns helps uncover wasted spend and improve this bottom-line metric.
What is Profitability?
When a prospect says, “Clicks are up, so we’re happy,” what’s the best way to respond?
What is ask about ROI or profitability?
Note: Clicks are a surface metric—they don’t guarantee revenue or profit. A campaign can drive tons of clicks but still lose money if those clicks don’t convert or cost too much. That’s why we pivot to ROI: ‘That’s great—how are those clicks translating into actual sales and profit?’ This opens the door for an audit, where we check conversion tracking, keyword targeting, and bidding strategies to make sure the account is optimized for business outcomes, not just traffic.