Revenue & Profit
Understanding your financial indicators to measure the profitability of your ad campaigns.
Overview
| KPI | What It Measures | Goal |
|---|---|---|
| Collected Revenue | Money received from your sales | Maximize |
| Ad Spend | Budget invested in Meta advertising | Control |
| Profit | What remains after expenses | Maximize |
| ROI | Return per dollar invested | > 2x |
| Margin | % of revenue you keep | > 50% |
| Average Ticket | Average revenue per sale | Depends on your offer |
Collected Revenue
The total payments received from your clients during the selected period. This figure represents the actual money that entered your business, not payment promises or pending invoices.
Why "Collected"?
We only count money received, not sales awaiting payment. This gives you a realistic picture of your financial situation.
Ad Spend
The total amount spent on Meta (Facebook and Instagram) during the period. This includes all your active campaigns, all ad sets, and all individual ads.
Profit
The difference between your revenue and your costs. The calculation takes into account your ad spend and commissions paid.
Profit = Collected Revenue - Ad Spend - CommissionsTIP
A positive profit doesn't automatically mean the campaign is optimal. Also look at ROI and margin to evaluate efficiency.
ROI (Return on Investment)
ROI tells you how many dollars you generated for each dollar invested in advertising.
- ROI of 3.5x = for every $1 spent on ads, you generated $3.50 in revenue
- ROI of 1x = you recovered your investment, with no profit
- ROI below 1x = you're losing money
Recommended Target
An ROI above 2x is generally considered healthy. Below 2x, margins become too thin once other business costs are factored in.
Margin
The percentage of your revenue that you keep as profit. It indicates how efficient your operation is.
- Margin of 60% = you keep $0.60 on every $1 of revenue
- Margin of 30% = you keep $0.30 on every $1 of revenue
The higher the margin, the more profitable your business relative to its revenue.
Average Ticket
The average revenue generated per sale. Useful for understanding the typical value of your transactions.
INFO
If your average ticket increases, it may mean your clients are buying more expensive products, or your upsells are working well. If it decreases, it's worth investigating.
Concrete Example
Here's a realistic scenario illustrating how these KPIs work together:
| KPI | Value |
|---|---|
| Ad Spend | $10,000 |
| Collected Revenue | $35,000 |
| Profit | $25,000 |
| ROI | 3.5x |
| Margin | 71% |
Reading: for every dollar invested in advertising, the business generated $3.50 in revenue. After ad spend, $25,000 in profit remains, or 71% of revenue. This is a very high-performing campaign.
Comparison Arrows
Each KPI displays a trend arrow comparing the current period to the previous period.
| Indicator | Meaning |
|---|---|
| Green arrow up | Improvement compared to the previous period |
| Red arrow down | Decline compared to the previous period |
How to Read Comparisons
If you're looking at the last 30 days, the comparison is made with the 30 days before that. A green arrow on ROI means your return improved. A red arrow on spend means you spent more: which isn't necessarily negative if revenue increased proportionally.