25d • General discussion
How ROAS Atrophies At Scale (And Why That is Ok)
When you start spending small, ROAS looks like equity in a tiny business:
Owning 20% of a grape doesn’t mean much.
As you scale, efficiency (ROAS) comes down. But volume goes way up:
Owning 10% of a watermelon is worth way more than 20% of a grape.
That’s how media buying works at scale: You trade perfect efficiency for bigger absolute outcomes.
A 5x ROAS on $1k spend (the grape) is cute. A quick $4k in profit.
A 3x ROAS on $100k spend (an orange) is where it starts to get fun. A nice $200k in profit.
A 2x ROAS on $1,000,000 in spend (a watermelon)... a million in profit.
ROAS doesn't matter without the context of scale.
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How ROAS Atrophies At Scale (And Why That is Ok)
