CONSUMER PRODUCT INDUSTRY PRACTICIONERS:

I have an extensive toolset for growing brand awareness, revenue and distribution.
See that in the STARTUP ROADMAP section of my website.

I have an extensive toolset for understanding, strategically positioning for, and tactically operating in web3.
See that in the WEB3 FOR CONSUMER BRANDS section of my website.




This is a Quora question I was asked to answer.

Do you mean the return on ad spend ratio (ROAS)?

I have never heard of “advertising to sales” ratio, but it probably means the same thing (revenue or sales divided by advertising spend…not to include media development costs or technology costs, just the costs to advertise the media).

Investors look at many things, but a strong ROAS is a way to capture their attention so that they may be more willing to take a deeper dive.

For consumer product companies, a ROAS of around 2 is breakeven on the profit and loss. If you can reliable demonstrate a consistent ROAS of 4 or more over the last 3-months with increasing media spend into the 5 figures, that might help capture attention.

But the higher the better. If you can show a 6 or more, then that should really capture attention. But you need to show consistency in achieving this ratio over time with higher spends (5 figures).

I have written more posts with ROAS and downloadable models using this ratio, here